Inside Money

Inside money is usually most of the amount of money that is in circulation in an economy. In mainly book money, which arose in the commercial banking sector through the granting of loans and the associated money creation.

Even when private business partners enter into credit relationships with one another, inside money is created. The creation of inside money is necessarily accompanied by a corresponding increase in private sector indebtedness. In economic theory, a distinction is made between inside money and outside money.

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Further explanations for the first letter "I"