Three keys to monetary analysis

No attempt to control and direct monetary phenomena can succeed if it is not based on a proper understanding and a correct interpretation of the mechanisms by which money is created and by which it circulates. This means that we must take these mechanisms apart, separate the components from each other and try to discover how they interact, using exactly the same method an engineer would adopt if he wanted to understand how a piece of machinery worked. We are not concerned here with the economic theories of money: our aim is rather to try to understand the phenomenon of money itself and the way it works.