This paper briefly summarizes the orthodox approach to banking, finance, and money, and then points the way toward an alternative based on socioeconomics. It argues that the alternative approach is better fitted to not only the historical record, but also sheds more light on the nature of money...

This paper examines Chairman Greenspan's recent claim that central bankers around the world have been operating quot;as ifquot; monetary policy were constrained by gold that backs up reserves. I argue, instead, that central banks in flexible exchange rate regimes operate with an overnight...