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Outside money is money that is not a liability for anyone "inside" the economy. It is held in an economy in net positive amounts. Examples are money that is backed by gold, and assets denominated in foreign currency or otherwise backed up by foreign debt, like foreign cash, stocks, or bonds. Typically, the private economy is considered as the "inside", so government-issued money is also "outside money." [1]
References
edit- ^ Lagos, Ricardo. "Inside and Outside Money" (PDF). Federal Reserve Bank of Minneapolis. Archived (PDF) from the original on 19 October 2012. Retrieved 2 April 2012.
See also
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