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El papel de la banca central en la circulación financiera desde una perspectiva heterodoxa

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  • Levy Orlik, Noemi

    (UAM)

Abstract

The role of the central bank in the capitalist system is defined by the assumptions of each theoretical school of thought and the dominant financial organization. Heterodox theory claims that demand determines supply, with strong disagreements surrounding financial circulation and central bank intervention in the financial system. This paper reviews Keynes’ proposals based on the assumption of state-dominated money, whose conclusions are that the central bank aims to stabilize the liquidity of the banking sector and that the interest rate can indirectly influence income and employment. Meanwhile, Kalecki starts from the assumption that money is private and the financial system is a reflection of the strengths or weaknesses of the productive sector. Thus, the central bank can only guarantee liquidity for capitalist activities through government securities that affect short- and long-term rates, without affecting investment spending and employment.

Suggested Citation

  • Levy Orlik, Noemi, 2025. "El papel de la banca central en la circulación financiera desde una perspectiva heterodoxa," El Trimestre Económico, Fondo de Cultura Económica, vol. 92(368), pages 989-1011, October-D.
    • Handle: RePEc:elt:journl:v:92:y:2025:i:368:p:989-1011
    DOI: https://doi.org/10.20430/ete.v92i368.3173
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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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