ABSTRACT
Money – modern fiat money – is the child of transactions. Money is only created only when students borrow from a Monetary Financial Institution (MFI). MFI banks are different. They have a government given right to create money and the government guarantees this money. Central banks estimate monetary aggregates and present these estimates in a high frequency, multi-dimensional and detailed way, showing money creating debts per kind of debt as well as per main sector of the economy. The monetary press release of the European Central Bank connects money creation to lending on a monthly basis. Money creation is in an explicit and granular fashion tied to changes in credit as well as money flows. Returning to the weights of indices: the sectoral data on credit and money are based on the ‘unit of account’ weight of debts and money, a unit which is guaranteed by the government.
