Making Money Work - Matt Sekerke

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Auteur(s) : Matt Sekerke - Steve H Hanke

Editeur : Wiley

Langue : Anglais

Parution : 01/05/2025

Format : Moyen, de 350g à 1kg

Nombre de pages : 368.0

ISBN : 9781394257263

Résumé :

The Global Financial Crisis broke the monetary system. Here's how to fix it.

In Making Money Work: How to Rewrite the Rules of Our Financial System, Matt Sekerke and Steve H. Hanke deliver a rigorous and fascinating exploration of the monetary economy. You'll find a detailed and clear roadmap of how and why fiat money is created and destroyed, its connections to the broader economy, and the objective mechanisms that underwrite and maintain its value.

In their exploration, Sekerke and Hanke solve many problems and puzzles and shed light on several important questions:

• Why economists misunderstand the structure and function of the monetary system
• The central role of the commercial banking system in fiat money regimes, and why commercial banks are not like other financial intermediaries
• The economic and regulatory constraints on bank money creation
• The interplay between banking and capital markets in funding investment projects
• How the banks that dominate the international financial landscape distort the lines between banking and capital markets business
• Why banking regulation and fiscal policy determine and constrain monetary policy to an equal or greater extent than central bank actions

Sekerke and Hanke trace important post-crisis policy developments and sketch the broad strokes of a new operating model that would restore the performance of the monetary system and make better use of aggregate savings:

• Making neutrality the explicit goal of monetary policy, properly understood
• Increasing the supply of bankable projects and keeping them on bank balance sheets
• Breaking the financial system's fatal attraction to land and real estate
• Reducing regulatory distortions in lending markets
• Reforming universal banking institutions and stimulating competition
• Transitioning to a quantity-based monetary policy framework

An engaging and incisive guide to the global systems of money and banking, Making Money Work is destined to become a sought-after classic for bankers, finance professionals, policymakers, regulators, academics, and laypeople with an interest in money and banking.

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Biographie:

MATT SEKERKE is a Managing Director at SEDA Experts, Senior Macro Advisor at Hiddenite Capital Partners, a Fellow at the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at the Johns Hopkins University, and a Visiting Fellow in the Department of Finance at Durham University Business School. He is the author of Bayesian Risk Management (Wiley Finance, 2015).

STEVE H. HANKE is a Professor of Applied Economics and Founder and Co-Director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise at the Johns Hopkins University. Hanke has served as an advisor to governments and heads of state in Europe, South America, and Asia. Currently, he serves as Chairman of the Supervisory Board of AMG Critical Materials in Amsterdam. He is the co-author of Capital, Interest, and Waiting (Palgrave Macmillan, 2024) with Leland B. Yeager....

Sommaire:

Foreword xvii

Introduction xix

Part One: How Money Works: Institutions of the Monetary Economy 1

Chapter 1: Rethinking Monetary Economics 3

Macroeconomics Without Money 4

Broad Money and the Banking System 5

From Interest-rate Policy to Quantity-based Policy 7

Neutral Monetary Policy 9

Productive Capital Markets 9

Chapter 2: Fiat Money Systems 13

Specifying Money So That Money Matters 14

Money Is Essentially an Abstract Measure of Value 14

Money Consists in a Claim or Credit 16

The State, or an Authority, Is an Essential Basis for Money 18

Money Is Not Neutral in the Economic Process 19

Fiat Monetary Standards 21

Metallic Standards 21

Standards After Metallic Standards 23

Foreign Exchange and the Quest for an International Monetary Standard 25

Revisiting the Foundations of Monetary Economics 27

Chapter 3: The Institutional Structure of the Monetary Economy 35

The Government Sector 36

The Fiscal Authority 36

The Monetary Authority 38

The Consolidated Government 39

The Commercial Banking System 41

Deposit Creation by Individual Banks 43

Fallacious Accounts of Bank Funding and Deposit Creation 45

Financial Intermediaries 48

Asset Managers 49

Money Market Funds 50

Asset-backed Securities 51

Consolidated Financial Intermediation Sector 53

The Nonbank Public: Nonfinancial Firms and Households 54

Nonfinancial Business 54

Households 56

The Rest of the World 57

The Money Supply and Its Connections to the Nonbank Public 58

The System of Claims as a Foundation for Monetary Theory 60

Chapter 4: Financial Intermediation in the Capital Markets 67

Savings and Investment: The Standard Macroeconomic Story 68

Savings and Investment: The Microeconomic Foundations 70

The NPV Criterion 71

Information Asymmetry 72

Equity Rationing 74

Revising the Growth Model 75

Financial Intermediation and Project Stratification 75

Chapter 5: Credit Creation by the Commercial Banking System 81

Savings and Investment: Expanding the Standard Story 82

The Set of Bankable Projects 85

Maturity Transformation and Bank Risk Management 88

Credit Risk Management 89

Interest Rate Risk Management 91

Liquidity Risk Management 93

Economic Growth with Credit and Capital Markets 96

Chapter 6: Universal Banks and the Banking-Capital Markets Boundary 103

Complementarities and Competition in Banking and Capital Markets Business 106

Risk Transformation in Securitization Markets 108

Risk Transfer Contracts 111

Bank Lending to Nonbank Financial Institutions 114

Risk Management in Universal Banks 116

Part Two: A Broader View of Monetary Policy 121

Chapter 7: Analytical Frameworks and Basic Monetary Facts 129

The Equation of Exchange and the Demand for Money 130

The Cambridge Equation 132

The Equation of Exchange in Economic Theory 132

Divisia Broad Money 135

Constructing Divisia Indices 136

Comparing Divisia and Simple Sum Aggregates 138

Sources of Divisia Money 141

Divisia Money by Sectors and Strata 144

Evolution of Bank Balance Sheets from 1945 to 2023 149

Broad Trends 150

Finer Details 153

Bank Lending Versus Capital Market Finance 156

Three Big Questions 163

Chapter 8: The Regulation of Universal Banks 173

Bank Capital Regulation 176

Defining Bank Capital 177

Capital Ade...