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The Monetary Theory of Kalecki and Minsky

Author

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  • Jan Toporowski

    (Department of Economics, SOAS University of London, UK)

Abstract

The monetary theory of Kalecki and Minsky is usually placed within the Post-Keynesian tradition, deriving from the monetary analysis of John Maynard Keynes. The paper argues that Kalecki and Minsky shared a common inheritance in Swedish and German monetary theory, rather than the Marshallian tradition. Thus the monetary analysis of Kalecki and Minsky emphasises the endogeneity of money through capitalist reproduction, rather than through the mechanisms connecting central bank money to credit creation in the banking system. This provides the link between the monetary theory of Kalecki and Minsky and modern circuit theory.

Suggested Citation

  • Jan Toporowski, 2012. "The Monetary Theory of Kalecki and Minsky," Working Papers 172, Department of Economics, SOAS University of London, UK.
    • Handle: RePEc:soa:wpaper:172
    as

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    File URL: https://www.soas.ac.uk/sites/default/files/2022-10/economics-wp172.pdf
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    References listed on IDEAS

    as
    1. Victoria Chick, 1992. "On Money, Method and Keynes," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-21935-3 edited by Philip Arestis & Sheila C. Dow, December.
    2. Marc Lavoie & Mario Seccareccia, 2001. "Minsky's financial fragility hypothesis: a missing macroeconomic link?," Chapters, in: Riccardo Bellofiore & Piero Ferri (ed.), Financial Fragility and Investment in the Capitalist Economy, chapter 4, Edward Elgar Publishing.
    3. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474.
    4. Malcolm Sawyer, 2007. "Kalecki on Money and Finance," Chapters, in: Philip Arestis & Malcolm Sawyer (ed.), A Handbook of Alternative Monetary Economics, chapter 11, Edward Elgar Publishing.
    5. Victoria Chick, 1992. "The Evolution of the Banking System and the Theory of Saving, Investment and Interest," Palgrave Macmillan Books, in: Philip Arestis & Sheila C. Dow (ed.), On Money, Method and Keynes, chapter 12, pages 193-205, Palgrave Macmillan.
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    Cited by:

    1. Bruno Bonizzi, 2013. "Capital Flows to Emerging Markets: An alternative Theoretical Framework," Working Papers 186, Department of Economics, SOAS University of London, UK.
    2. Piacentini, P.M., 2021. "Minsky after Kalecki: real profits and financial structure," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 416-426.

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    More about this item

    Keywords

    Keynes; Kalecki; Minsky; Money;
    All these keywords.

    JEL classification:

    • B30 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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