Accounting Money Creation: Comparative Approaches and Limitations

The sources jointly address the complex topic of money creation and seigniorage measurement through an accounting lens, highlighting both academic theory and practical application. The first source synthesizes academic research examining the comparative strengths and limitations of various accounting approaches—such as flow-of-funds and balance sheet analysis—in documenting money creation across different economic systems, noting difficulties like conceptual ambiguity and measurement divergence. The second source provides a universal seigniorage-measurement blueprint designed to quantify the real resource transfer from creating new money using the formula $S_t = \Delta M_t \cdot (i_t^m - \pi_t) - C_t$, which is applicable across all fiat and reserve systems regardless of jurisdiction. Together, the texts explore how academic frameworks define money (mostly as debt) and how a standardized, stock-flow coherent methodology can accurately measure the profits captured by both central and commercial banks from money issuance.