Money and Credit in Capitalist Economies: The Endogenous Money ApproachThis widely acclaimed book argues that money is not the product of a simple deposit multiplier process. The impressive analysis includes discussions of the origins and nature of money and of the evolution of monetary institutions and theory. Unlike other recent works on 'endogenous money', this book incorporates liquidity preference theory within the analysis by carefully distinguishing money from liquidity and by showing how money, but not liquidity, is created on demand. This naturally leads to a role for liquidity preference in the determination of interest rates. Extensions then link money to financial instability, the expenditure multiplier, credit, saving, investment, development, deficits and growth. This controversial and provocative book will be essential reading for all economists and researchers concerned with monetary and macroeconomics. It will have particular appeal to post Keynesian economists. |
Contents
The Endogenous Approach to Money | 1 |
Money and Institutional Evolution | 24 |
Endogenous Money versus Exogenous Money | 72 |
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Common terms and phrases
accumulation analysis Asset Liability balance sheets bank liabilities bank notes Bank of England bankers banking system billion bills of exchange borrowers capital cash cent central bank certificates of deposit Chapter circulation Column commercial banks commercial paper commodity money constrained country banks created credit money Currency School demand deposits discount rate discount window discussed endogenous approach endogenous money approach endogenously determined excess reserves exogenous expansion expectations expenditures Fed's fiat money financial institutions financial system firms flows function giro hoards ibid income increase innovation investment Keynes's Keynesian leverage ratios liquid assets liquidity preference theory loans long term bonds means of payment medium of exchange Minsky Monetarism Monetarist monetary aggregates money demand money stock money supply curve Moore note issue production profit purchasing power quantity constraints quantity of money rate of growth rate of interest repurchase agreements required reserves reserve requirements rise saving spending term interest rates