Money and Credit in Capitalist Economies: The Endogenous Money Approach

I strongly recommend Wray's book to every monetary theorist. . . . Wray s book should be excellent supplementary reading. Sheila C. Dow, Scottish Journal of Political Economy This is an ambitious and altogether excellent book. It should be read by all monetary economists, especially by those interested in the endogeneity debates. Christopher J. Niggle, Journal of Economic Issues . . . perhaps the most significant contribution to the post Keynesian monetary literature since Paul Davidson s Money and the Real World. Adrian Winnett, The Manchester School of Economic and Social Studies Professor Wray has written a wonderful book. He is one of the most promising young scholars in the post Keynesian movement. I look forward to his future contributions to the fields of monetary theory and policy. Charles J. Wilson, Review of Political Economy This 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.