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Inside and outside money

Author

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  • Ricardo Lagos

Abstract

A distinction is drawn between outside money - money that is either of a fiat nature or backed by some asset that is not in zero net supply within the private sector - and inside money, which is an asset backed by any form of private credit that circulates as a medium of exchange.

Suggested Citation

  • Ricardo Lagos, 2006. "Inside and outside money," Staff Report 374, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmsr:374
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    References listed on IDEAS

    as
    1. Kocherlakota, Narayana R., 1998. "Money Is Memory," Journal of Economic Theory, Elsevier, vol. 81(2), pages 232-251, August.
    2. Neil Wallace, 2000. "Knowledge of individual histories and optimal payment arrangements," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Sum), pages 11-21.
    3. Ricardo de O. Cavalcanti & Andres Erosa & Ted Temzelides, 1999. "Private Money and Reserve Management in a Random-Matching Model," Journal of Political Economy, University of Chicago Press, vol. 107(5), pages 929-945, October.
    4. Ricardo de O. Cavalcanti & Neil Wallace, 1999. "Inside and outside money as alternative media of exchange," Proceedings, Federal Reserve Bank of Cleveland, pages 443-468.
    5. Nobuhiro Kiyotaki & John Moore, 2003. "Inside Money and Liquidity," Edinburgh School of Economics Discussion Paper Series 115, Edinburgh School of Economics, University of Edinburgh.
    6. Nobuhiro Kiyotaki & John Moore, 2002. "Evil Is the Root of All Money," American Economic Review, American Economic Association, vol. 92(2), pages 62-66, May.
    7. Nobuhiro Kiyotaki & John Moore, 2001. "Evil is the Root of all Money (Clarendon Lectures 1)," Edinburgh School of Economics Discussion Paper Series 110, Edinburgh School of Economics, University of Edinburgh.
    8. Nobuhiro Kiyotaki & John Moore, 2005. "Financial Deepening," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 701-713, 04/05.
    9. Ricardo de O. Cavalcanti & Neil Wallace, 1999. "A model of private bank-note issue," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(1), pages 104-136, January.
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    Cited by:

    1. Franz Seitz & Markus A. Schmidt, 2014. "Money In Modern Macro Models: A Review of the Arguments," Journal of Reviews on Global Economics, Lifescience Global, vol. 3, pages 156-174.
    2. Tumen, Semih, 2012. "Regulation and the market for checks," Economic Modelling, Elsevier, vol. 29(3), pages 858-867.
    3. Semih Tumen, 2012. "Regulating Check Use in Turkey," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 12(1), pages 1-12.
    4. Stephan Luck & Paul Schempp, 2014. "Outside Liquidity, Rollover Risk, and Government Bonds," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2014_14, Max Planck Institute for Research on Collective Goods.
    5. Rivero Leiva, David & Rodríguez Mendizábal, Hugo, 2019. "Self-fulfilling runs and endogenous liquidity creation," Journal of Financial Stability, Elsevier, vol. 45(C).
    6. Stracca, Livio, 2007. "Should we take inside money seriously?," Working Paper Series 841, European Central Bank.
    7. Jia, Pengfei, 2021. "Trust Shocks, Financial Crises, and Money," MPRA Paper 106343, University Library of Munich, Germany.

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