Jump to ContentJump to Main Navigation
The Money ProblemRethinking Financial Regulation$
Users without a subscription are not able to see the full content.

Morgan Ricks

Print publication date: 2016

Print ISBN-13: 9780226330327

Published to Chicago Scholarship Online: September 2016

DOI: 10.7208/chicago/9780226330464.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 06 July 2022

(p.1) Introduction

(p.1) Introduction

(p.1) Introduction
The Money Problem

Morgan Ricks

University of Chicago Press

The Introduction frames the problem of monetary system design and lays out the book’s central themes and arguments. The shadow banking system—basically, the system of private money creation—serves as an entry point. The chapter offers a brief overview of this system and the central role it played in the recent financial crisis. It then explains what it means to say that shadow banking is a monetary phenomenon. Armed with this recognition, we can see that asking “what should be done about shadow banking” is tantamount to asking “how should our monetary system be designed.” Next, the chapter sketches the book’s blueprint for a revamped system of money and banking. The approach would confine the issuance of monetary instruments (functionally defined) to a designated class of chartered entities, and it would make the money supply sovereign and nondefaultable. The chapter concludes that, before embarking on a vast array of costly and speculative interventions in the financial system, we might be well served by trying to get money right. It might then turn out that many of the supposed problems of finance are not as big as we thought.

Keywords:   monetary system, money creation, shadow banking, financial stability

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.