On Some Equilibrium and Disequilibrium Theories of Endogenous Money: A Structuralist View
AbstractThis paper is intended to be a contribution to a historico-critical analysis of some recent theories of endogenous money supply. Not a systematic survey of the literature on the subject. It is mainly concerned with the internal consistency of the „circuit. theories developed in the 1980.s and early 1990.s and their later reappraisals and adjournments. It deals, inter alia, with some theoretical and practical problems concerning the monetary equilibrium framework of some of such theories, the endogenous or exogenous nature of the supply of money and of its single components, the relative importance of the different functions of money, the distinction between money and bank credit, the „closure. of a monetary circuit and the institutional role of a central bank as a lender of last resort. The author is a non-fundamentalist post-Keynesian monetary theorist. He regards money demand and supply as two strictly connected variables, whose structural interdependence precludes a causal approach to an analysis of the way money enters the circular income flow.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 43738.
Date of creation: 2004
Date of revision:
Publication status: Published in History of Economic Ideas 3.12(2004): pp. 49-81
Endogenous money supply; circuit theories; monetary equilibrium and disequilibrium; credit money; fundamentalist Keynesism; structuralism;
Find related papers by JEL classification:
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
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