The first attempt in the human history to consciously create money ended in a collapse in 1720, well-known as the money … mania. This unfortunate start raises doubt on money creation as a whole such that today there are still voices questioning … created money even though it is now indispensible for the world economy. But this misfortune also has the bright side in that …

Today all countries have fiat money issued by a central bank. There is no obligation by a central bank to exchange its … money for gold or any other good. Central banks have the monopoly to issue central bank money and have the power to create … their money out of nothing. Creating such a monetary system is functional for a capitalist economy and must be regarded as a …

of the Freeman (1996) model of money and payments, we first analyze the problematic monetary situation in the Netherlands …