Source: Banking in the Shadows, Kernel

Account or balance sheet-style thinking is a banker’s way of being able to hold complementary opposites and demand in mind.

See also: money

Printing Money

It’s often not correct to say that when the Fed is ‘printing money’ they are straight up just injecting into one side. Most times, it expands both sides of the balance sheet.

Prices of Money

  1. Interest Rate (future) — price of money now in terms of price of money later
  2. Part (now) — price of one money in terms of another money (e.g. between states, between private and central bank)
  3. Exchange Rate (foreign) — price of domestic money in terms of foreign/world money
  4. Price level (commodities) — price of money in terms of price level of commodities