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This article introduces the Real Standard as an anchoring compass for understanding modern money creation. It proposes that money should not be created from thin air but must always be anchored in something real: property, human capital, or fiscal capacity. The Real Standard reframes money creation as a process of transformation rather than ex nihilo creation, guiding policymakers and executives toward a balanced approach that combines flexibility with discipline. Using Federal Reserve and recent BIS and IMF data, the paper demonstrates that over 95% of purchasing power in the U.S. originates from credit creation, not printed base money. The framework also reinterprets the Federal Reserve’s role as an “anchor manager,” responsible for safeguarding the integrity of these three anchors that underpin economic stability.

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