Discussion — Lecture 1: The Four Prices of Money

Welcome to Money and Banking!

This session covers Lecture 1: The Four Prices of Money. This lecture provides motivation, context, and themes for the Money and Banking MOOC.

Lecture Notes

Many of us have taken the course before. In addition to discussing the lecture, we will also introduce ourselves and set our intentions for working through the material.

Chapters 1-3 of Stigum's Money Market provide an overview of some of the course subject matter from a market practitioners' perspective.

For a concise overview/refresher of Perry Mehrling's Money View, check out Elham Saeidinezhad's Promises All the Way Down: A Primer on the Money View.

The lectures for this course were filmed in the fall of 2012, but the world didn't stop then. For more Money View resources, including more recent/ongoing material, see:

– Archive of the original The Money View blog, which goes from November 2010 to October 2012.
– Perry Mehrling's more recent blog, which has posts from April 2015 to June 2020.
– Dan Neilson's Soon Parted Substack, which just started a few months ago and updates regularly.
– Zoltan Poszar's Global Money Notes, which runs from May 2015 to June 2020.

We will also go over the Borja Clavero color-coded payment notation, which can help us make intuitive sense of the balance sheet.

• Yellow — Payment by assignment (Passing an asset to another balance sheet)
• Green — Payment by issuance (Issuing a new liability)
• Red — Payment by set off (Repaying a liability that is owed)
• Blue — Payment by novation (Receiving a liability from another balance sheet)

Money and Banking 2022 INET ED Master Thread
Lecture 1 Discussion Thread