Modern Money Mechanics

by Federal Reserve Bank of Chicago

This reprint presents Modern Money Mechanics as it was originally published by the Federal Reserve Bank of Chicago in editions ranging from 1961-1992. The last revision, made in 1992, was most recently published in 1994. As a description of our money system since the time of the creation of the Federal Reserve, hard money advocates, political libertarians and others have found the content of this book damning and used it as part of a general critique of American fiat currency. This booklet has been cited by Gary North, Lew Rockwell, the U.S. and U.K. Libertarian parties and many others. It even features in YouTube videos. As a simplified model for fractional reserve banking, Modern Money Mechanics remains an excellent beginning, one that can be read in a single sitting and one that has the advantage of showing us the Federal Reserve presenting itself and its operations to a broad, mass readership.

Genres: Economics, Finance, Business, Money

44 pages, Paperback

First published January 30, 2009

Reviews

[Ayz · Rating 5 out of 5]

Open your eyes.

Things are not what they appear to be.

[Derek · Rating 4 out of 5]

This is a great read that will open your eyes to how our banking system actually works. This is fundamental, baseline knowledge that comes strait from the source. The best part is that it is written in a way that the average person can understand it without formal education in finance or economics.

[Paul-Gerrit · Rating 5 out of 5]

From the horses mouth. I have been wondering how the money is created and accounted for and this workbook is short and sweet.

[Merz · Rating 5 out of 5]

Excellent starting point for research about how money flows . All middle schoolers should read it .

[Tim Carlson · Rating 5 out of 5]

A good primer/review of fractional reserve banking.

[Povilas · Rating 5 out of 5]

Simply classics. Modern banking system at a glance (fractional reserve system, money multiplication etc.). Great introduction and highly highly recommended!

[Cagin Donmez · Rating 5 out of 5]

Introduction to fractional reserve banking. Super easy to grasp for a beginner.

[Carl Johnson · Rating 5 out of 5]

Modern Money Mechanics is THE classic explanation (in plain English) of both factional reserve banking in general and the role of the Federal Reserve in regulating the volume and volatility of money in the national economy of the United States. Readers should bear in mind, however, that the simple model presented is only intended to convey a basic idea of how money works or rather how money formerly worked. The rise of Commercial Paper (direct loans between Corporations) and Crypto Currencies (money based on manufactured scarcity, regulatory elusiveness, and anonymity), not to mention digital transactions of incomprehensible speed and complexity, render the model presented almost quaint in comparison to current reality.

[Dmitry · Rating 5 out of 5]

Очень хорошо про взаимодействие банков и ФРС, но мало, жаль, что это не учебник по экономике.

[WILLIAM F · Rating 3 out of 5]

Reads like stereo instructions.

[Alexander · Rating 3 out of 5]

Essentially, this is a criminal confession. Publication of this in centuries past would have led to bankers' heads being affixed to pikes. So much for progress.