Written by John Lounsbury
Dirk Ehnts has written an important book. It addresses the topics of money, macroeconomic systems, financial economy and the fabric that connect these through balance sheet accounting. While this may sound wonkish, Dr. Ehnts has written this book for readers without prior specialist knowledge. He focuses on the euro zone and the European Central Bank.
This note is not a book review; I have only scanned the 26 pages available and read some of the pages. Here is another preview of the 26 pages. Dr. Ehnts has an announcement posted on his website:
For those of you who are interested in my book (published with Routledge in 2016) but want to have a look first before buying the hardcover version or the ebook I provide this link to Google Books which shows quite a lot of the pages for free:
The book is an introduction into the creation of central bank money by the European Central Bank, the creation of deposits by banks and fiscal activities of the state. In a way, these are the microeconomic fundamentals that need to be understood before one continues to aggregate the data and do macroeconomics. In the second part of the book this aggregation is done through the construction of sectoral balances and an application of the theory to the eurozone.
