Definition of inside money in English:
noun[mass noun] Economics
Money held in a form such as bank deposits which is an asset to the holder but also represents a liability for someone else.
- In their original contribution, Gurley and Shaw had emphasized the distinction between ‘outside money’ and ‘inside money,’ currency and bank deposits being the standard examples.
- Because Treasury securities are effectively ‘outside money,’ they lessen the contagion that occurs when ‘inside money’ becomes suspect.
- The market can only generate ‘private’ or ‘inside money.’
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