ABSTRACT
Money is supposed to circulate in the body of society like blood in a living body. An anaemic economy could therefore be invigorated by an injection of money or by activating the money already in existence. Any monetary movement is the creation or the destruction of a real product. The distinction between real and monetary variables is therefore pure imagination. The “cross-moves” between the goods of the two worlds, nominal and real, constitute the basic postulate of the accepted monetary theory. The transmission of money is the reduction of an existing money. The creation of money is based, on the contrary, on a zero amount of money. Granted, no money is transported in the money creation. The policy measures advocated in the world today to fight inflation and unemployment are undermined by another vice, as fundamental as the dichotomic separation of real and monetary magnitudes: the alleged dichotomy between global demand and supply.
