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 251
... Fed to eventually intervene and provide the reserves needed to sustain the system . Giordano ( 1987 ) has analyzed the Fed's response to six financial crises which have occurred over the past 20 years : the 1970 Penn Central crisis ...
... Fed to eventually intervene and provide the reserves needed to sustain the system . Giordano ( 1987 ) has analyzed the Fed's response to six financial crises which have occurred over the past 20 years : the 1970 Penn Central crisis ...
Page 255
... Fed's behavior is primarily defensive . They also regress changes in the monetary base on a derived variable which represents changes in the base due to Fed defensive behavior . They find that 91 per cent of the variation in the ...
... Fed's behavior is primarily defensive . They also regress changes in the monetary base on a derived variable which represents changes in the base due to Fed defensive behavior . They find that 91 per cent of the variation in the ...
Page 256
... Fed's holdings of government securities on three variables : the net change in the Fed's assets , change in currency held by the public , and the change in required reserves . A decline in the Fed's assets , a rise in currency held by ...
... Fed's holdings of government securities on three variables : the net change in the Fed's assets , change in currency held by the public , and the change in required reserves . A decline in the Fed's assets , a rise in currency held by ...
Contents
The Endogenous Approach to Money | 1 |
Money and Institutional Evolution | 24 |
Premodern financial institutions and the rise | 30 |
Copyright | |
16 other sections not shown
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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