Outside money

Foreign money is the money that is not based its process of money creation in a corresponding increase in the level of private economic agents.

Typical examples thereof are scooped the money in the purchase of foreign currency and the scooped money from the government debt by the central bank. From the accounting perspective the assets and liabilities of private sector agents through a consolidated balance sheet can not be voided. That is, the net amount of foreign money in an economy is not zero.

On the basis of Gurley and Shaw's theoretical position outside money is the real net wealth, ie a positive change in the real value of private economic power, and can therefore trigger the wealth effect.