Inside money and outside money

In monetary economics, inside money is money issued by private intermediaries (i.e., commercial banks) in the form of debt (credit).

[1] This money is typically in the form of demand deposits or other deposits and hence is part of the money supply.

It is held in an economy in net positive amounts.

[3] Inside money is thus a liability (equivalently a negative asset) to the issuer, so the net amount of assets associated with inside money in an economy is zero.

This money or currency-related article is a stub.