both the money market and the capital market. The Money View includes elements of theories and insights by H.P. Minsky, Charles Kindleberger, Marcia Stigum, to name just a few. Central institutions Money, as a means of payment, to facilitate (final) settlement. Credit, as a promise to pay (money). Finance, to facilitate valuation of promises to pay. Banking, as a means of allocation of credit. Hierarchy of Money Inspired by Minsky's Hierarchy of Money, the Money View recognizes the de facto inequality of economic agents or entire countries in their capacity to issue something called money. A privileged few at the top of the hierarchy may issue money while the rest can only issue mere promises to pay money, i.e. credit (further down the hierarchy). The US dollar is at the top of the international hierarchy of money. Politics The Money View is inherently political. Its political dimensions are manifold and include the following: a direct application of values the Enlightenment as a philosophical movement purports (by, inter alia, sustaining from vulgar assumptions on the nature of human beings that often prevails in economics, such as the homo economicus) ideas centered on reason as the primary source of knowledge a recognition of the "difficulty of money" an open rejection of equilibrium accounts of the economy (and therefore of mainstream economic thought & teaching) a refutation of the quantity theory of money critical thinking about the monetary-financial system (as opposed to proficient manipulation of formal models) an emphasis on liquidity as compared to solvency Epistemology The Money View relies on comparatively few assumptions and uses reason as the primary source of knowledge. Generally, its analytical framework is based on viewing every monetary entity in terms of their stylized balance sheet, which serves as basic tools for asset-liability management, i.e. to measure sources and uses of funding. The Money View has been categorized by Zoltan Pozsar as 'monetary reality' (in contrast to monetary theory) because of its reliance on balance sheets and T-accounts. References External links Perry Mehrling at Boston University Frederick S. Pardee School of Global Studies 1959 births Living people 21st-century American economists Barnard College faculty Harvard University alumni Institute for New Economic Thinking