Sponsored transactional patterns: Comments on Mehrling’s “Essential hybridity: A money view of FX”

Mehrling (2013) recognizes the essential hybridity of money supply, its being partly created by the state (central banks) and partly by the private sector banks. These comments concern extending the hybridity concept to the recognition that many transactions and settlements procedures are facilitated by central banks. The prime example is the operation of Real Time Gross Settlements systems by practically every central bank. These systems are how the world’s foreign exchange market settles more than $4Trillion dollars a day of trading.