Making Money Work: How to Rewrite the Rules of Our Financial System. By Matt Sekerke and Steve Hanke, Wiley, 2025

Abstract

MMW starts with the unique role of commercial banks in creating money, and deplores the way this critical function has become a compliance exercise.  A different concept of commercial banks' central role can change the way we understand competition in banking, while also energizing the role of investment banks, private equity and venture capital.  A more efficient banking system will boost economic growth.  The authors revisit Basel capital and liquidity rules, the Dodd-Frank Act, and management of universal banks.  They introduce a new concept of "monetary neutrality."  They then provide discussions of deposit insurance, of monetary consequences of real estate tax distortions, and of post-GFC QE and LSAP's.  They offer a critique of "old monetarism," then show how Divisia metrics can aid monetary management.

Keywords. Fiscal Federalism; Multilevel States; Asymmetric Arrangements; Internal Conflicts; Conflict Resolution; Comparative Federalism.

JEL. D74; H71; H72; H77; P52.