Leaving aside the events that made the current monetary system possible, banknotes that are printed monopolistically (currency) by central banks have purchasing power and serve as a general medium of exchange (money) for billions of people around the world. Such currencies (paper money), with no backing and with no non-monetary use, make up the monetary base upon which the fractional reserve banking system relies; first, through their privileged backing by central banks as lenders of last resort and second, through the reserve multiplier, allowing commercial banks to provide loans (bank...
















