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Theories of Money Creation: From Post-keynesians to Circuitists. Review and Prospects

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  • Joanna Bauvert

    (Centre d'études interdisciplinaires Walras-Pareto, BFSH1, Lausanne University 1015 Lausanne-Dorigny, Suisse)

Abstract

Contrary to the neo-classical position, post-keynesians and circuitists developed the endogenous money approach, emphasising the function of banks in the creation of money and considering that the interest rate is exogenous (fixed by the Central Bank). Both, Post-keynesians and Circuitists, develop their arguments using some of Keynes' insights: the “finance motive”, his conception of credit, the principle of effective demand and the role of uncertainty. Because of this common background the frontier between these currents of thought is fuzzy and changing. Therefore, it is often difficult to appreciate the differences between them

Suggested Citation

  • Joanna Bauvert, 2004. "Theories of Money Creation: From Post-keynesians to Circuitists. Review and Prospects," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 61, pages 35-51, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2004:i:61:p:35-51
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    References listed on IDEAS

    as
    1. Mata, Tiago, 2004. "Constructing Identity: The Post Keynesians and the Capital Controversies," Journal of the History of Economic Thought, Cambridge University Press, vol. 26(2), pages 241-259, June.
    2. Seccareccia, M, 1996. "Pricing, Investment and the Financing of Production Within the Framework of the Monetary Circuit: Some Preliminary Evidence," Working Papers 9609e, University of Ottawa, Department of Economics.
    3. Thomas Palley, 2007. "Asset-based Reserve Requirements: A Response," Review of Political Economy, Taylor & Francis Journals, vol. 19(4), pages 575-578.
    4. Louis-Philippe Rochon & Sergio Rossi (ed.), 2003. "Modern Theories of Money," Books, Edward Elgar Publishing, number 2506.
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    More about this item

    Keywords

    money; post-keynesian;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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