Money and output are interchangeable as output is associated with a positive emission of money—when financial intermediaries grant loan to entrepreneurs this leads to creation of bank deposits. Final purchases are associated with negative emission-because they allow entrepreneurs to pay off their bank loans, and as such imply a destruction of the bank deposits [1]. Thus, any time a positive amount of money flows in one direction (money creation), it simultaneously reflows back (money destruction). Money therefore never exists in continuous time and all money is credit money and this implies that the quantity of credit money is always zero due to its initial creation and final destruction (2,3).
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