In monetary economics, inside money is money issued by private intermediaries (i.e. commercial banks) in the form of debt (credit). In the presence of interest rate differentials, debt issuers can make arbitrage profits by lending short and borrowing long. The money, i.e. the debt that is exchanged in this course is referred to as inside money.
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- Lagos, Ricardo. "Inside and Outside Money," (PDF). Federal Reserve Bank of Minneapolis. Retrieved 2 April 2012.
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