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
Results 1-3 of 64
Page 263
... firms ( which are rolling - over debt , or which have floating rate loans ) increase . Some firms may be unable to meet commitments on the basis of income flows , so are forced to liquidate assets , reduce discretionary spending , and ...
... firms ( which are rolling - over debt , or which have floating rate loans ) increase . Some firms may be unable to meet commitments on the basis of income flows , so are forced to liquidate assets , reduce discretionary spending , and ...
Page 269
... Firms issue securities ( PB , CP ) in order to hold financial assets ( DD , TD ) or to purchase goods and services from the public and from other firms ( GS ) . The government issues securities ( GB ) to purchase goods and services from ...
... Firms issue securities ( PB , CP ) in order to hold financial assets ( DD , TD ) or to purchase goods and services from the public and from other firms ( GS ) . The government issues securities ( GB ) to purchase goods and services from ...
Page 270
... firms prefer to issue longer term liabilities if the assets they hold are long term . Thus , the firm in this example would like to sell a long term security ( PB ) so that it can retire the short term security it originally issued ( CP ) ...
... firms prefer to issue longer term liabilities if the assets they hold are long term . Thus , the firm in this example would like to sell a long term security ( PB ) so that it can retire the short term security it originally issued ( CP ) ...
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
Other editions - View all
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