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 132
... expenditures , he argued ' the increase in the supply of money is a consequence of increased loan expenditure ' ( Kaldor and Trevithick 1981 , p . 5 ) . When firms utilize credit lines , ' there will be an automatic increase in the ...
... expenditures , he argued ' the increase in the supply of money is a consequence of increased loan expenditure ' ( Kaldor and Trevithick 1981 , p . 5 ) . When firms utilize credit lines , ' there will be an automatic increase in the ...
Page 133
... expenditures and the money supply , this is simply proof that expenditures raise the level of the money supply when they are based on the extension of credit ( Kaldor 1985 , p . 22 ) . Central bank control over the money supply consists ...
... expenditures and the money supply , this is simply proof that expenditures raise the level of the money supply when they are based on the extension of credit ( Kaldor 1985 , p . 22 ) . Central bank control over the money supply consists ...
Page 159
... expenditures , this may be accompanied by an increase in hoards to satisfy the finance motive . Therefore , an increase in activity which entails an advance of loans , some of which will not return immediately to the banking system due ...
... expenditures , this may be accompanied by an increase in hoards to satisfy the finance motive . Therefore , an increase in activity which entails an advance of loans , some of which will not return immediately to the banking system due ...
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