{"product_id":"making-money-work-how-to-rewrite-the-rules-of-our-financial-system-hardback-9781394257263","title":"Making Money Work; How to Rewrite the Rules of Our Financial System (Hardback) 9781394257263","description":"\u003cfont face=\"Georgia\"\u003e\r\n\u003cp\u003e\u003cfont size=\"6\"\u003eMaking Money Work\u003c\/font\u003e\u003cbr\u003e\r\n\u003cfont size=\"5\"\u003eHow to Rewrite the Rules of Our Financial System\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\u003cp\u003e\u003cfont size=\"4\"\u003eMatt Sekerke (Author), Steve H. Hanke (Author)\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e9781394257263, Wiley\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eHardback, published 8 May 2025\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e368 pages\u003cbr\u003e25.6 x 18.5 x 2.5 cm, 0.726 kg\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\r\n\r\n\r\n\u003cp align=\"justify\"\u003e\u003cstrong\u003e\u003cfont size=\"3\"\u003e\u003cp\u003e\u003cb\u003eThe Global Financial Crisis broke the monetary system. Here's how to fix it.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eMaking Money Work: How to Rewrite the Rules of Our Financial System,\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eIn their exploration, Sekerke and Hanke solve many problems and puzzles and shed light on several important questions:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eWhy economists misunderstand the structure and function of the monetary system\u003c\/li\u003e \u003cli\u003eThe central role of the commercial banking system in fiat money regimes, and why commercial banks are not like other financial intermediaries\u003c\/li\u003e \u003cli\u003eThe economic and regulatory constraints on bank money creation\u003c\/li\u003e \u003cli\u003eThe interplay between banking and capital markets in funding investment projects\u003c\/li\u003e \u003cli\u003eHow the “banks” that dominate the international financial landscape distort the lines between banking and capital markets business\u003c\/li\u003e \u003cli\u003eWhy banking regulation and fiscal policy determine and constrain monetary policy to an equal or greater extent than central bank actions\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eSekerke 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:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eMaking neutrality the explicit goal of monetary policy, properly understood\u003c\/li\u003e \u003cli\u003eIncreasing the supply of bankable projects and keeping them on bank balance sheets\u003c\/li\u003e \u003cli\u003eBreaking the financial system's fatal attraction to land and real estate\u003c\/li\u003e \u003cli\u003eReducing regulatory distortions in lending markets\u003c\/li\u003e \u003cli\u003eReforming universal banking institutions and stimulating competition\u003c\/li\u003e \u003cli\u003eTransitioning to a quantity-based monetary policy framework\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAn engaging and incisive guide to the global systems of money and banking, \u003ci\u003eMaking Money Work\u003c\/i\u003e is destined to become a sought-after classic for bankers, finance professionals, policymakers, regulators, academics, and laypeople with an interest in money and banking.\u003c\/p\u003e\u003c\/font\u003e\u003c\/strong\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003e\u003cp\u003eForeword xvii\u003c\/p\u003e \u003cp\u003eIntroduction xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One: How Money Works: Institutions of the Monetary Economy 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1: Rethinking Monetary Economics 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMacroeconomics Without Money 4\u003c\/p\u003e \u003cp\u003eBroad Money and the Banking System 5\u003c\/p\u003e \u003cp\u003eFrom Interest-rate Policy to Quantity-based Policy 7\u003c\/p\u003e \u003cp\u003eNeutral Monetary Policy 9\u003c\/p\u003e \u003cp\u003eProductive Capital Markets 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2: Fiat Money Systems 13\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSpecifying Money So That Money Matters 14\u003c\/p\u003e \u003cp\u003eMoney Is Essentially an Abstract Measure of Value 14\u003c\/p\u003e \u003cp\u003eMoney Consists in a Claim or Credit 16\u003c\/p\u003e \u003cp\u003eThe State, or an Authority, Is an Essential Basis for Money 18\u003c\/p\u003e \u003cp\u003eMoney Is Not Neutral in the Economic Process 19\u003c\/p\u003e \u003cp\u003eFiat Monetary Standards 21\u003c\/p\u003e \u003cp\u003eMetallic Standards 21\u003c\/p\u003e \u003cp\u003eStandards After Metallic Standards 23\u003c\/p\u003e \u003cp\u003eForeign Exchange and the Quest for an International Monetary Standard 25\u003c\/p\u003e \u003cp\u003eRevisiting the Foundations of Monetary Economics 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3: The Institutional Structure of the Monetary Economy 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Government Sector 36\u003c\/p\u003e \u003cp\u003eThe Fiscal Authority 36\u003c\/p\u003e \u003cp\u003eThe Monetary Authority 38\u003c\/p\u003e \u003cp\u003eThe Consolidated Government 39\u003c\/p\u003e \u003cp\u003eThe Commercial Banking System 41\u003c\/p\u003e \u003cp\u003eDeposit Creation by Individual Banks 43\u003c\/p\u003e \u003cp\u003eFallacious Accounts of Bank Funding and Deposit Creation 45\u003c\/p\u003e \u003cp\u003eFinancial Intermediaries 48\u003c\/p\u003e \u003cp\u003eAsset Managers 49\u003c\/p\u003e \u003cp\u003eMoney Market Funds 50\u003c\/p\u003e \u003cp\u003eAsset-backed Securities 51\u003c\/p\u003e \u003cp\u003eConsolidated Financial Intermediation Sector 53\u003c\/p\u003e \u003cp\u003eThe Nonbank Public: Nonfinancial Firms and Households 54\u003c\/p\u003e \u003cp\u003eNonfinancial Business 54\u003c\/p\u003e \u003cp\u003eHouseholds 56\u003c\/p\u003e \u003cp\u003eThe Rest of the World 57\u003c\/p\u003e \u003cp\u003eThe Money Supply and Its Connections to the Nonbank Public 58\u003c\/p\u003e \u003cp\u003eThe System of Claims as a Foundation for Monetary Theory 60\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4: Financial Intermediation in the Capital Markets 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSavings and Investment: The Standard Macroeconomic Story 68\u003c\/p\u003e \u003cp\u003eSavings and Investment: The Microeconomic Foundations 70\u003c\/p\u003e \u003cp\u003eThe NPV Criterion 71\u003c\/p\u003e \u003cp\u003eInformation Asymmetry 72\u003c\/p\u003e \u003cp\u003eEquity Rationing 74\u003c\/p\u003e \u003cp\u003eRevising the Growth Model 75\u003c\/p\u003e \u003cp\u003eFinancial Intermediation and Project Stratification 75\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5: Credit Creation by the Commercial Banking System 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSavings and Investment: Expanding the Standard Story 82\u003c\/p\u003e \u003cp\u003eThe Set of Bankable Projects 85\u003c\/p\u003e \u003cp\u003eMaturity Transformation and Bank Risk Management 88\u003c\/p\u003e \u003cp\u003eCredit Risk Management 89\u003c\/p\u003e \u003cp\u003eInterest Rate Risk Management 91\u003c\/p\u003e \u003cp\u003eLiquidity Risk Management 93\u003c\/p\u003e \u003cp\u003eEconomic Growth with Credit and Capital Markets 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6: Universal Banks and the Banking–Capital Markets Boundary 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eComplementarities and Competition in Banking and Capital Markets Business 106\u003c\/p\u003e \u003cp\u003eRisk Transformation in Securitization Markets 108\u003c\/p\u003e \u003cp\u003eRisk Transfer Contracts 111\u003c\/p\u003e \u003cp\u003eBank Lending to Nonbank Financial Institutions 114\u003c\/p\u003e \u003cp\u003eRisk Management in Universal Banks 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two: A Broader View of Monetary Policy 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7: Analytical Frameworks and Basic Monetary Facts 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Equation of Exchange and the Demand for Money 130\u003c\/p\u003e \u003cp\u003eThe Cambridge Equation 132\u003c\/p\u003e \u003cp\u003eThe Equation of Exchange in Economic Theory 132\u003c\/p\u003e \u003cp\u003eDivisia Broad Money 135\u003c\/p\u003e \u003cp\u003eConstructing Divisia Indices 136\u003c\/p\u003e \u003cp\u003eComparing Divisia and Simple Sum Aggregates 138\u003c\/p\u003e \u003cp\u003eSources of Divisia Money 141\u003c\/p\u003e \u003cp\u003eDivisia Money by Sectors and Strata 144\u003c\/p\u003e \u003cp\u003eEvolution of Bank Balance Sheets from 1945 to 2023 149\u003c\/p\u003e \u003cp\u003eBroad Trends 150\u003c\/p\u003e \u003cp\u003eFiner Details 153\u003c\/p\u003e \u003cp\u003eBank Lending Versus Capital Market Finance 156\u003c\/p\u003e \u003cp\u003eThree Big Questions 163\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8: The Regulation of Universal Banks 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBank Capital Regulation 176\u003c\/p\u003e \u003cp\u003eDefining Bank Capital 177\u003c\/p\u003e \u003cp\u003eCapital Adequacy Before the Basel Era 179\u003c\/p\u003e \u003cp\u003eCapital Adequacy After the First Basel Accord 180\u003c\/p\u003e \u003cp\u003eThe 1996 Market Risk Amendment 182\u003c\/p\u003e \u003cp\u003eThe Monetary Policy Impact of the Basel I Era 183\u003c\/p\u003e \u003cp\u003eThe Problem of the Trading Book 184\u003c\/p\u003e \u003cp\u003eRegulatory Capital Under Basel III 187\u003c\/p\u003e \u003cp\u003eBank Liquidity Regulation 189\u003c\/p\u003e \u003cp\u003eThe Liquidity Coverage Ratio 190\u003c\/p\u003e \u003cp\u003eThe Net Stable Funding Ratio 194\u003c\/p\u003e \u003cp\u003eSumming Up 195\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9: Monetary Aspects of the Government Budget 203\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStable Government Debt Dynamics and the Monetary Standard 205\u003c\/p\u003e \u003cp\u003eStability Conditions 205\u003c\/p\u003e \u003cp\u003eDeposit Insurance 208\u003c\/p\u003e \u003cp\u003eFiscal Influences on Aggregate Conditions 209\u003c\/p\u003e \u003cp\u003eCentral Bank Transactions in Government Obligations 210\u003c\/p\u003e \u003cp\u003eGovernment-sponsored Enterprises and Financial Agencies 211\u003c\/p\u003e \u003cp\u003eMonetary Consequences of GSE Guarantees 213\u003c\/p\u003e \u003cp\u003eThe Federal Home Loan Bank System 214\u003c\/p\u003e \u003cp\u003eCrowding-out in Capital Markets 216\u003c\/p\u003e \u003cp\u003eThe Disaggregated Budget Arithmetic 217\u003c\/p\u003e \u003cp\u003eSome Examples of Sector-level Fiscal Influence 219\u003c\/p\u003e \u003cp\u003eSectoral Impact of the Fiscal Impulse from Quantitative Easing 220\u003c\/p\u003e \u003cp\u003eAppendix 9.A Propagation of a Fiscal Impulse 223\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10: Central Bank Policy 231\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCentral Bank Policy Implementation Before and After the GFC 233\u003c\/p\u003e \u003cp\u003eQuantitative Easing and Its Consequences 234\u003c\/p\u003e \u003cp\u003eReestablishing Control Over Short-term Interest Rates 237\u003c\/p\u003e \u003cp\u003eThe Path to Normalization and the COVID Interventions 238\u003c\/p\u003e \u003cp\u003eStructural Changes in the Reserve Market 242\u003c\/p\u003e \u003cp\u003eInterest Rate Policy Transmission and Asset Prices 245\u003c\/p\u003e \u003cp\u003eAn Unintended Period of Steady Broad Money Growth 247\u003c\/p\u003e \u003cp\u003eProspects for Future Interest Rate Policy 251\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three: Rewriting the Rules of Our Financial System 259\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11: Defining Neutral Monetary Policy 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNeutral Monetary Policy 262\u003c\/p\u003e \u003cp\u003eDefining Neutrality 264\u003c\/p\u003e \u003cp\u003eWhy Neutrality? 266\u003c\/p\u003e \u003cp\u003eEfficient Use of Global Savings 267\u003c\/p\u003e \u003cp\u003eFormation of Investable Projects 268\u003c\/p\u003e \u003cp\u003eFormation of Bankable Projects 269\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12: Universal Banks in the Monetary System 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCompetition in Commercial Banking 273\u003c\/p\u003e \u003cp\u003eCompetition in Capital Markets 276\u003c\/p\u003e \u003cp\u003eCompetition Within Universal Banks 277\u003c\/p\u003e \u003cp\u003eCompetition Versus Financial Stability 278\u003c\/p\u003e \u003cp\u003eGovernance 279\u003c\/p\u003e \u003cp\u003eRegulation 281\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13: The Base of Investable and Bankable Projects 285\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOf Savings Gluts and Safe Assets 286\u003c\/p\u003e \u003cp\u003eShifts in the Balance of Domestic Saving 287\u003c\/p\u003e \u003cp\u003eSafe Assets as a Sink for the Saving Glut 288\u003c\/p\u003e \u003cp\u003eAprès le deluge 289\u003c\/p\u003e \u003cp\u003eThe Pathological Character of Land and Real Estate 290\u003c\/p\u003e \u003cp\u003eInvestable Projects Involving Land 290\u003c\/p\u003e \u003cp\u003eThe Bankability of Investable Projects Involving Land 292\u003c\/p\u003e \u003cp\u003eExposure of the Banking System to Land Values 294\u003c\/p\u003e \u003cp\u003eIs Technology Making Fewer Projects Bankable? 296\u003c\/p\u003e \u003cp\u003eHow to Expand the Base 297\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14: Rewriting the Rules 303\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eToward a New Central Bank Operating Model 304\u003c\/p\u003e \u003cp\u003eErrors of the Old Monetarism 305\u003c\/p\u003e \u003cp\u003eTargeting Divisia Money 306\u003c\/p\u003e \u003cp\u003eReserve Management 309\u003c\/p\u003e \u003cp\u003eStanding Facilities 309\u003c\/p\u003e \u003cp\u003eMonitoring the Distributional Impact of Broad Money Growth 311\u003c\/p\u003e \u003cp\u003eFixing Bank Regulation 311\u003c\/p\u003e \u003cp\u003eSplitting the Banking Book and the Trading Book 312\u003c\/p\u003e \u003cp\u003eNeutral Credit Risk Weights 314\u003c\/p\u003e \u003cp\u003eLiquidity Risk Management 318\u003c\/p\u003e \u003cp\u003eUnderwriting, Pricing, and Innovation 318\u003c\/p\u003e \u003cp\u003eUsing Savings More Efficiently 320\u003c\/p\u003e \u003cp\u003eReducing Government’s Footprint in the Capital Markets 320\u003c\/p\u003e \u003cp\u003eUnwinding the Federal Reserve Balance Sheet 322\u003c\/p\u003e \u003cp\u003eUnfinished Business 324\u003c\/p\u003e \u003cp\u003eAppendix 14.A Neutral Credit Risk Weights 326\u003c\/p\u003e \u003cp\u003eAbout the Authors 331\u003c\/p\u003e \u003cp\u003eIndex 333\u003c\/p\u003e\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\u003cp\u003e\u003cfont size=\"3\"\u003eSubject Areas: Business \u0026amp; management [\u003ca title=\"See our other books on Business \u0026amp; management\" href=\"https:\/\/freshlyprintedbooks.co.uk\/search?q=%22Business%20\u0026amp;%20management%20%5BKJ%5D%22\"\u003eKJ\u003c\/a\u003e]\u003c\/font\u003e\u003c\/p\u003e\r\n\r\n\r\n\u003c\/font\u003e","brand":"Wiley","offers":[{"title":"Brand New","offer_id":52165304320280,"sku":"9781394257263","price":19.87,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0730\/2037\/5320\/files\/9781394257263.jpg?v=1781097807","url":"https:\/\/freshlyprintedbooks.co.uk\/products\/making-money-work-how-to-rewrite-the-rules-of-our-financial-system-hardback-9781394257263","provider":"Freshly Printed Books","version":"1.0","type":"link"}