If I understand the circular flow of income correctly, we can visualize money moving around the country in exchange for goods and services. Sources of money are the central bank (MB) and the financial sector (everything else). I found this very helpful in understanding how things function.
Is there a similar visualization for the global economy, including sources of "global money" if that's a thing?
As far as I understand the economic actors would include:
- individual countries, including their:
- central bank money (MB)
- commercial bank money
- foreign reserves
- World Bank
So I'm trying to understand something more than my naive sense that "every country can trade with every other country":