Money is 1/2 of every transaction. Yet we never discuss how money is supposed to function. The topic of the management of money is taboo. The world has put its trust in the Federal Reserve to manage all monetary activities, and it is believed that only an elite special few people have the ability to understand how to manage the world’s money properly. Since the US dollar is considered the world currency, the value of that money affects everyone around the globe. What actually is money? Where does it come from? It is taken for granted that US monetary policy is based on sound economic principles. No one questions the actions of the Federal Reserve.
In order for a Lean economic system to function properly monetary policy is very important to insure wealth is being created and properly used to facilitate trade. Money is 1/2 of every transaction and we are all taught at a very young age that money does not grow on trees. Which is in actuality a warning of the dangers of inflation. Unfortunately the Lean community has completely ignored the important function money management that can either enhance of inhibit economic growth. In reality the concept of money is rarely discussed and even less understood.
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