# Inside money/outside money It is important to recognize the current hierarchy of the money system. The first layer is a horizontal circuit of the private or inside money system: the expansion and contraction of balance sheet leverage, the circuit that obtains between correspondent bankers, or in our case, [Economic agent](/economic-agent.md)s. The second one is the fiscal circuit of the state or outside money system: the ex nihilo creation of nominal money pegged to the unit of account in which disputed contracts are enforced; and, optionally, the unit in which taxes are received. The design problem for ECSA is: how do we extricate ourselves from the second circuit and replicate its functions within the first circuit, in such a way that both stability and justice are endogenously produced. The secondary problem is to explain how the monetary system hooks into the real metabolic activity of the economy. Thanks to Colin Drumm for making this challenge explicit. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://glossary.ecsa.io/inside-money-outside-money.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.