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 76
... Fed's record , it actually can hit targets if it so desires . Balbach argues the Fed can control the base , and this would enable it to hit monetary targets : It has been widely asserted that , although excessive monetary growth is a ...
... Fed's record , it actually can hit targets if it so desires . Balbach argues the Fed can control the base , and this would enable it to hit monetary targets : It has been widely asserted that , although excessive monetary growth is a ...
Page 205
... Fed's supply of reserves to the increase in required reserves over the previous year . On average , the Fed supplies about five times the additional reserves needed by the system . However , 1972 , 1980 , 1984 , and 1986 were years in ...
... Fed's supply of reserves to the increase in required reserves over the previous year . On average , the Fed supplies about five times the additional reserves needed by the system . However , 1972 , 1980 , 1984 , and 1986 were years in ...
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 ...
Contents
The Endogenous Approach to Money | 1 |
Money and Institutional Evolution | 24 |
Premodern financial institutions and the rise | 30 |
Copyright | |
15 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