Making Money Work
How to Rewrite the Rules of Our Financial System
📘 About This Book
The Global Financial Crisis broke the monetary system. Here's how to fix it. In Making Money Work: How to Rewrite the Rules of Our Financial System, Matt Sekerke and Steve H. Hanke deliver a rigorous and fascinating exploration of the monetary economy. You'll find a detailed and clear roadmap of how and why fiat money is created and destroyed, its connections to the broader economy, and the objective mechanisms that underwrite and maintain its value. In their exploration, Sekerke and Hanke solve many problems and puzzles and shed light on several important questions: Why economists misunderstand the structure and function of the monetary system The central role of the commercial banking system in fiat money regimes, and why commercial banks are not like other financial intermediaries The economic and regulatory constraints on bank money creation The interplay between banking and capital markets in funding investment projects How the “banks” that dominate the international financial landscape distort the lines between banking and capital markets business Why banking regulation and fiscal policy determine and constrain monetary policy to an equal or greater extent than central bank actions Sekerke and Hanke trace important post-crisis policy developments and sketch the broad strokes of a new operating model that would restore the performance of the monetary system and make better use of aggregate savings: Making neutrality the explicit goal of monetary policy, properly understood Increasing the supply of bankable projects and keeping them on bank balance sheets Breaking the financial system's fatal attraction to land and real estate Reducing regulatory distortions in lending markets Reforming universal banking institutions and stimulating competition Transitioning to a quantity-based monetary policy framework An engaging and incisive guide to the global systems of money and banking, Making Money Work is destined to become a sought-after classic for bankers, finance professionals, policymakers, regulators, academics, and laypeople with an interest in money and banking.
📖 Summary
Making Money Work, authored by Matt Sekerke alongside Steve H. Hanke, offers a rigorous and fascinating exploration of the modern monetary economy, diving deep into how the global financial crisis exposed deep fractures in our monetary system and presenting a clear roadmap for how to fix it. At its core, the book tackles the fundamental mechanics of fiat money, explaining with remarkable clarity how currency is brought into existence and subsequently destroyed. The authors meticulously trace the connections between this money creation process and the broader economy, shedding light on the objective mechanisms that underwrite and maintain the value of fiat currency in a post-crisis world. One of the central themes of the book is a critical examination of mainstream economic thought. Sekerke and Hanke argue persuasively that traditional economists frequently misunderstand the true structure and function of the monetary system. To correct these widespread misconceptions, the authors place commercial banking institutions at the very center of their analysis. They explain the pivotal role that commercial banks play within fiat money regimes, distinguishing them clearly from other types of financial intermediaries and demonstrating why standard financial models often fail to capture their unique systemic impact. By solving many long-standing problems and puzzles inherent in modern monetary economics, the text offers readers a much-needed intellectual recalibration. Spanning 375 pages, Making Money Work does not shy away from complexity, yet it successfully bridges the gap between academic rigor and practical accessibility. It provides a detailed blueprint for rewriting the rules of our financial system so that it can better withstand future shocks and serve society more effectively. Whether dissecting the intricacies of credit creation or evaluating the systemic vulnerabilities exposed by the Global Financial Crisis, Sekerke and Hanke deliver a comprehensive and thought-provoking volume that challenges conventional wisdom and invites economists, policymakers, and finance professionals to rethink the foundations of money and banking.
🎯 Key Lessons
⚖️ Pros & Cons
✅ Pros
Provides a rigorous and fascinating exploration of the monetary economy.
Offers a clear roadmap for fixing post-crisis financial systems.
Challenges common misunderstandings held by mainstream economists.
Delivers deep insights into the unique mechanics of commercial banking.
⚠️ Cons
The heavy focus on economic theory may be challenging for complete beginners.
Complex monetary concepts require close and careful reading.
❓ FAQ
Who wrote Making Money Work? +
The book was written by Matt Sekerke and Steve H. Hanke.
How many pages is the book? +
Making Money Work is 375 pages long.
What primary event motivated the book's premise? +
The book is motivated by how the Global Financial Crisis broke the monetary system and how to fix it.
What core economic concept does the book examine? +
It explores the monetary economy, fiat money creation, and the function of commercial banks.
When was the book published? +
It is published in 2025.
