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. |
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Page 168
... interest rates . Finally , as the balance sheets of the public absorb more long term bonds , the liquidity premium ... rate of interest is then established at a level sufficient to induce the public to hold saving in the form of bonds ...
... interest rates . Finally , as the balance sheets of the public absorb more long term bonds , the liquidity premium ... rate of interest is then established at a level sufficient to induce the public to hold saving in the form of bonds ...
Page 184
... interest rate for an exogenously determined money supply in his endogenous theory of money . He argues that the central bank merely sets a price for reserves and then meets all demand , while banks set a price above this and then meet ...
... interest rate for an exogenously determined money supply in his endogenous theory of money . He argues that the central bank merely sets a price for reserves and then meets all demand , while banks set a price above this and then meet ...
Page 187
... rate and determines the level of open market purchases to achieve a set of policy objectives . Such objectives might include interest rate targets , bank leverage ratios ( reserves to liabilities ) , rate ... interest rates 187 Conclusions.
... rate and determines the level of open market purchases to achieve a set of policy objectives . Such objectives might include interest rate targets , bank leverage ratios ( reserves to liabilities ) , rate ... interest rates 187 Conclusions.
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