The book explores the endogenous creators of inside money the commercial banks and their key
role in igniting the 2007-8 monetary crisis and the aftermath of the Great Recession. This is
an area of study overlooked by the traditional approach in the form of neo-classical analysis
a body of theory based on a barter system of exchange. Money has evolved from a construct of
barter to become a medium of exchange based on fiat money and loan creation by the banking
system underpinned by legal tender and therefore a creature of law. It is not a phenomenon
exogenously controlled by the monetary authorities and simply assumed to be a veil over the
real economy which just determines the absolute price level. This monograph in the eyes of
the student represents critical thinking and the realization of a more precise formulation of
the endogenous money supply with various features systematically added in an attempt to derive
a fully dynamic model of the monetary system which will be straightforward to visualize and
contrast with the benchmark approach.
