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. |
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Page 186
... cent by 1939. In contrast , the Baa rate on bonds was 5.60 per cent in 1929 , rose to 7.76 per cent in 1933 , and fell to 4.96 per cent by 1939.28 These data seem inconsistent with a markup approach , since the markup increased from ...
... cent by 1939. In contrast , the Baa rate on bonds was 5.60 per cent in 1929 , rose to 7.76 per cent in 1933 , and fell to 4.96 per cent by 1939.28 These data seem inconsistent with a markup approach , since the markup increased from ...
Page 207
... cent ( the average rate of growth of M1 over the decade of the 1970s was 8 per cent ) . Thus , extremely loose monetary policy did not encourage banks to expand their balance sheets . As another example , in 1972 the Fed reduced its ...
... cent ( the average rate of growth of M1 over the decade of the 1970s was 8 per cent ) . Thus , extremely loose monetary policy did not encourage banks to expand their balance sheets . As another example , in 1972 the Fed reduced its ...
Page 250
... cent in 1979 to 6.4 per cent by 1981 , while the interest rate on commercial paper rose from 10.91 per cent in 1979 to 14.76 per cent in 1981. ( During the same period , the Fed raised the discount rate from 10.28 per cent to 13.42 per ...
... cent in 1979 to 6.4 per cent by 1981 , while the interest rate on commercial paper rose from 10.91 per cent in 1979 to 14.76 per cent in 1981. ( During the same period , the Fed raised the discount rate from 10.28 per cent to 13.42 per ...
Contents
The Endogenous Approach to Money | 1 |
Money and Institutional Evolution | 24 |
Premodern financial institutions and the rise | 30 |
Copyright | |
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Common terms and phrases
balance sheets bank liabilities bank notes Bank of England banking system borrowers capitalist cash cent central bank certificates of deposit Chapter circulation Column commercial banks commercial paper commitments commodity money constrained consumption country banks created credit money currency debt demand deposits demand for money discount rate discount window economy endogenous approach endogenous money approach endogenously determined excess reserves exogenous expansion expenditures Fed funds market fiat money financial assets financial institutions financial system firms flows foreign function giro hoards ibid income increase innovations investment Kaldor Keynes's Keynesian leverage ratios liquid assets liquidity preference theory loanable funds long term bonds markup means of payment medium of exchange Minsky Monetarism Monetarist monetary aggregates money demand money supply curve Moore off-balance sheet open market purchases portfolios quantity constraints rate of growth rate of interest repurchase agreements required reserves reserve requirements rise saving sector securitization spending surplus units term interest rates velocity