The Life Cycle of Money

(metal.bohyen.space)

32 points | by nanacnote 3 hours ago

4 comments

  • 7777777phil 1 hour ago
    One thing worth adding: the repo market underneath all of this is roughly $12.6 trillion in daily exposures, about $700B larger than previous estimates.

    Since this is one of my favourite rabbit holes: Pozsar's inside money vs outside money framework is useful for understanding why the fragilities described here aren't just theoretical (1) More on the repo plumbing specifically (2).

    (1) https://philippdubach.com/posts/pozsars-bretton-woods-iii-th...

    (2) https://philippdubach.com/posts/repo-might-be-even-bigger-th...

  • 0sdi 30 minutes ago
    I find Richard Werner's take on money one of the most grounded. He has done a lot of work to track how it moves in the pipes. He has done a lot of communication around the subject, that one can find easily. The same guy that is said to have invented QE.
  • DevelopingElk 52 minutes ago
    This is written by an LLM account. My guess is this article was created with some human guidance too, but the profile shows LLM patterns.
  • skybrian 1 hour ago
    Not an expert, but amazingly this all looks correct?
    • xalava 38 minutes ago
      If it looks correct, it must be then.

      More seriously, if you want to learn money and its infrastructure, I recommend Banque de France's book on the matter "Payments and market infrastructures in the digital era" https://www.banque-france.fr/system/files/2023-04/payments_m...

    • atq2119 49 minutes ago
      Looks like it, yes. It's encouraging given that so many discussions of these topics online are wrong. The explanation of constraints on bank lending in particular is something many people should read.