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Inside and Outside Money

Staff Report 374 | Published May 1, 2006

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Inside and Outside Money


A distinction is drawn between outside money—money that is either of a fiat nature or backed by some asset that is not in zero net supply within the private sector—and inside money, which is an asset backed by any form of private credit that circulates as a medium of exchange.

Published in: _New Palgrave Dictionary of Economics_ (2nd ed., 2008)