Assume that you are teaching a ‘Monetary Economics’ course to an undergraduate class.  Your students would probably ask:

• What do you mean by broad money?
• What do you mean by a payment system?
• How does the connection between cash and broad money work in practice?
• How does broad money grow?
• What kind of credit transactions enable money growth?
• What are the other mechanics that affect money growth?
• Can you give practical examples from the Eurozone, Japan, the United Kingdom and the United States?
• Can you give hypothetical but simple illustrations on balance sheets and income statements?

If you have difficulty in motivating your students to read the ‘credit mechanics’ literature of the early to mid 20th century (see my previous blog entry on Decker and Goodhart, 2018), a practical way out would be to use the Jilek and Matousek (2010) as a supplementary text in class:

Jilek, Josef and Roman Matousek (2010) Money in the Modern World, Peter Lang, Frankfurt.

Although the book does not include much theory, I’m sure the students would enjoy,  and also benefit during their careers from, a basic knowledge of the mechanics of money.