How Money Works

Inaccurate accounts of history can be deadly. Many a dictator has used twisted historical narratives to justify their oppression. This section lays out the basics of how our monetary system actually works, dispelling myths and providing a little historical context along the way. 

How to run a currency Part I: Getting the words right

How to run a currency Part II: Taxation for dummies

How to run a currency Part III: Tax reform of and for the people

How to run a currency Part IV: Developing national capital

How to run a currency Part V: Restoring hope

Freedonia and Moronia: a sovereign currency parable.

Angst in Freedonia: are there no alternatives to austerity? continues the parable of Freedonia and Moronia as they deal with an economic crisis. 

Once Upon A Time...Money Fairytales helps lay the groundwork for our explanation of State money.

Where does money come from? The invention of State money (national currencies) is perhaps one of the greatest inventions in history, yet we've forgotten the instruction manual.

Deficits create financial savings explains how Government money differs from Private sector bank money, and where a nation's financial savings come from.

What about bank money? Can't the Private sector save by itself? This post distinguishes the functions of bank money versus State money in the accumulation of financial wealth.

Where's our economic recovery coming from? Building on the truism that the three economic sectors (government, private, and foreign) always balance, we explore the importance of government money in economic downturns.