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 159
... banking system due to the finance motive , is likely to place upward pressure on interest rates unless banks are willing to accommodate the rising demand for hoards . Thus , as Kregel ( 1986a ) argues , banks play an important role in ...
... banking system due to the finance motive , is likely to place upward pressure on interest rates unless banks are willing to accommodate the rising demand for hoards . Thus , as Kregel ( 1986a ) argues , banks play an important role in ...
Page 270
... banking system will temporarily experience a rise of required reserves . If reserve requirements are calculated on the basis of average holdings of demand deposits , then the banking system will be forced to increase its reserves . This ...
... banking system will temporarily experience a rise of required reserves . If reserve requirements are calculated on the basis of average holdings of demand deposits , then the banking system will be forced to increase its reserves . This ...
Page 279
... banking system in the form of demand deposits , then the banking system is not affected : the $ 90 in demand deposits are held by the public rather than by consumption sector firms . Thus , these models confirm Keynes's claim that it is ...
... banking system in the form of demand deposits , then the banking system is not affected : the $ 90 in demand deposits are held by the public rather than by consumption sector firms . Thus , these models confirm Keynes's claim that it is ...
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