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 107
... circulation is decided by the holders of bank debt , and not by banks . Since the quantity of bank liabilities outstanding is demand determined , it can never be excessive . Thus , it can't directly cause prices to rise . 8 Monetarism ...
... circulation is decided by the holders of bank debt , and not by banks . Since the quantity of bank liabilities outstanding is demand determined , it can never be excessive . Thus , it can't directly cause prices to rise . 8 Monetarism ...
Page 108
... circulation , nor result in falling prices . If the Bank of England reduced its note issues , these would have to be made up by expanded circulation of private issues of notes and bills . If the quantity of private issues were not ...
... circulation , nor result in falling prices . If the Bank of England reduced its note issues , these would have to be made up by expanded circulation of private issues of notes and bills . If the quantity of private issues were not ...
Page 114
... circulation into the general circulation and serves as money there .... ( Marx 1909 , p . 474 ) Thus , like Tooke , Ma . argues that bank notes are merely another private debt , but one which appears to be different from other private ...
... circulation into the general circulation and serves as money there .... ( Marx 1909 , p . 474 ) Thus , like Tooke , Ma . argues that bank notes are merely another private debt , but one which appears to be different from other private ...
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