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. |
From inside the book
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Page 119
... cash and restoring liquidity .... Consumption does just as well ; in fact it does better , since an increase in wealth may involve a more or less proportionate increase in the inactive demand for cash . A given level of activity and ...
... cash and restoring liquidity .... Consumption does just as well ; in fact it does better , since an increase in wealth may involve a more or less proportionate increase in the inactive demand for cash . A given level of activity and ...
Page 174
... cash is demanded to satisfy the finance motive , so that interest rates may fall . It is only by reducing cash hoards in anticipation of spending less that the public can make its plan to increase ' thriftiness ' known and thereby ...
... cash is demanded to satisfy the finance motive , so that interest rates may fall . It is only by reducing cash hoards in anticipation of spending less that the public can make its plan to increase ' thriftiness ' known and thereby ...
Page 195
... cash payments are due so that most of the uncertainty involves the cash income to be generated on the asset side . However , in the case of the bank , a large portion of its liabilities can be called in by creditors at short notice ...
... cash payments are due so that most of the uncertainty involves the cash income to be generated on the asset side . However , in the case of the bank , a large portion of its liabilities can be called in by creditors at short notice ...
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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