28 May 2020 | The Private Debt Project, a Philadelphia-based online journal, has published a piece that analyses and systematizes different current shadow money theories.
In their co-authored piece, Steffen Murau and Tobias Pforr argue that, despite different terminology and intellectual ancestry, contemporary shadow money theories can generally agree on three key criteria that define shadow money: A financial instrument must be met by a demand that considers it an alternative to established forms of money, has to trade at par to higher-ranking forms of money and must be created through a swap of private debt certificates. The core disagreement of shadow money theorists over what instruments to count as shadow money lies in the level of strictness in applying those criteria on real-world financial instruments. Read more…
