Question

what is the relationship between National account and money and banking?

Answer 1

National accounts or national account systems (NAS) are defined as a measure of the production and purchase macroeconomic categories within a nation. These systems are essentially accounting methods used to measure a country's economic activity, based on an agreed framework and set of accounting rules. In particular, national accounts are meant to address detailed economic details in such a way as to promote research and even policy making.

With the financialization of the economy, the rise of shadow banking and the globalization of the wholesale money market, the money and banking system has become very complex in the last thirty years. It can feel daunting to get a grasp of it. But the system's main design features can be easily grasped. They show the role the system plays in the challenges we face and a plan to reinvent it so that money operates within the constraints imposed by limited environments for the mutual good. For our democracy it is important that the general public understand these matters and feel motivated to question and reshape the money and banking system.

Over the past couple of centuries, the U.S. government and many governments around the world have ceded to the private banking sector a key function of government-money creation.

When their tax revenue is inadequate to cover their expenditures, such governments are forced to borrow from the very institutions to which they ceded their power to generate income. We all borrow our money supply efficiently and pay interest thereon every year. These interest payments function as a tax on the productive economy which only benefits the wealthy and the private banking sector. The statistical consequence of this cycle is a constant rise in disparities of income.