The Monetary systems


offers a modern account of the monetary system, and although it touches on the Eurodollar a little bit, it is motly US-focused. Reading through this comprehensive account, or any articlet that touches on the topic, I can't help but think "how the hell did we get to something so complicated and so fragile?". This is where a little bit of history cannot hurt. The excellent Monetary Mechanics newsletter has a series on the history of the monetary system that does a good job at explaining how we moved from one system to the next.

Define what a monetary system. Regulates how you can create money via monetary creation policies.

What does it mean that we are not able to afford something?

I feel that as a nation it is only true if we are relying on importations. Otherwise what we have is limited by what we can produce?

La création monétaire est la quantité de collatéral acceptée par le cash.

We know that we have an entropy issue with finance.

Fiat currency

In 1971 the dollar is not backed by gold anymore (which was a way to prevent the Fed to create too much money?) and becomes a fiat currency. Debt replaces gold. "Debt as good as gold".

TODO What is the gold reserve history? What was the purpose? How did the state finance itself?


  • modern account of the offshore eurodollar system
  • is a good modern account of the monetary system, with a focus on the US.
  • history of the lending-deposit system
  • history of the private Fed Funds market
  • history of the Eurodollar banking system I
  • history of the Eurodollar banking system II
  • history of certificates of deposits (CDs)
  • history of bank holding companies (BHCs)
  • history of commercial paper (CP)


  • Joseph J. Wang, Central Banking 101 (2021)
  • Warren Mosler, (2013)
  • Michael J. Howell, (2020)
  • North, Money and Liberation: The Micropolitics of Alternative Currency Movements
  • Eich, The Currency of Politics: The Political Theory of Money from Aristotle to Keynes
  • Stell, The Battle of Bretton Woods
  • Ingham, The Nature of Money
  • Cassi, The world of private banking
  • Jacob Goldstein, Money: The True Story of a Made-Up Thing (2021)
  • Weatherford, The History of Money
  • Niall Ferguson, The Ascent of Money (2009)
  • Jin Xu & Stacy Mosher, Empire of Silver: A new Monetary History of China (2021)
  • Eswar S. Prasad, The future of money: how the digital revolution is transforming currencies and finance (2021)
  • Milton Friedman, A Monetary History of the United States, 1867–1960 (1992)


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