Modern Money Theory: A Primer on Macroeconomics for Sovereign Monetary Systems

by L. Randall Wray

Me: Asset = $5 coconuts; Liability = My $1 IOU; my assets exceed my liabilities by $4, which is my net worth until I eat the coconuts. You: Asset = $4 fish + My $1 IOU; Liability = 0; so your net worth is $5 until you eat the fish.

calculation