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On Some Equilibrium and Disequilibrium Theories of Endogenous Money: A Structuralist View

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  • Cavalieri, Duccio

Abstract

This 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.

Suggested Citation

  • Cavalieri, Duccio, 2004. "On Some Equilibrium and Disequilibrium Theories of Endogenous Money: A Structuralist View," MPRA Paper 43738, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:43738
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    References listed on IDEAS

    as
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    3. Cavalieri, Duccio, 1999. "Il circuito della moneta e il finanziamento dell'economia. Un'analisi teorica
      [Monetary circuit and economy financing: a theoretical analysis]
      ," MPRA Paper 43895, University Library of Munich, Germany.
    4. Giuseppe Fontana, 2003. "Post Keynesian Approaches to Endogenous Money: A time framework explanation," Review of Political Economy, Taylor & Francis Journals, vol. 15(3), pages 291-314.
    5. Louis-Philippe Rochon & Matias Vernengo & Louis-Philippe Rochon & Matias Vernengo, 2003. "State money and the real world: or chartalism and its discontents," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(1), pages 57-67.
    6. Dow, Sheila C, 1996. "Horizontalism: A Critique," Cambridge Journal of Economics, Oxford University Press, vol. 20(4), pages 497-508, July.
    7. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
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    9. Cavalieri, Duccio, 1996. "Sullo statuto teorico dell'offerta di moneta: un dibattito con Augusto Graziani
      [On the theoretic status of the supply of money: a debate with Augusto Graziani]
      ," MPRA Paper 43888, University Library of Munich, Germany.
    10. Parguez, A. & Seccareccia, M., 1999. "A Credit Theory of Money: The Monetary Circuit Approach," Working Papers 9902e, University of Ottawa, Department of Economics.
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    24. Arestis, Philip & Howells, Peter, 1996. "Theoretical Reflections on Endogenous Money: The Problem with 'Convenience Lending.'," Cambridge Journal of Economics, Oxford University Press, vol. 20(5), pages 539-551, September.
    25. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
    26. Godley, Wynne, 1999. "Money and Credit in a Keynesian Model of Income Determination," Cambridge Journal of Economics, Oxford University Press, vol. 23(4), pages 393-411, July.
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    Citations

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    Cited by:

    1. Cavalieri, Duccio, 2014. "Towards an integrated theory of value, capital and money," MPRA Paper 58198, University Library of Munich, Germany.
    2. Cavalieri, Duccio, 2015. "Structural interdependence in monetary economics: theoretical assessment and policy implications," MPRA Paper 65526, University Library of Munich, Germany.
    3. Cavalieri, Duccio, 2015. "On stock-flow consistent approaches and the like: the ‘rediscovery’ of model building," MPRA Paper 67050, University Library of Munich, Germany, revised 02 Oct 2015.
    4. Cavalieri, Duccio, 2006. "The difficult task of integrating money in the theory of production," MPRA Paper 44097, University Library of Munich, Germany.
    5. Cavalieri, Duccio, 2014. "A Critical Marxist Simple Approach to Capital Theory," MPRA Paper 58213, University Library of Munich, Germany.
    6. Cavalieri, Duccio, 2013. "On the interdependence of money supply and demand," MPRA Paper 44428, University Library of Munich, Germany.
    7. Cavalieri, Duccio, 2013. "A theory of capital as value in progress," MPRA Paper 47197, University Library of Munich, Germany.
    8. Cavalieri, Duccio, 2013. "A Critical Marxist Approach to Capital Theory," MPRA Paper 50527, University Library of Munich, Germany.

    More about this item

    Keywords

    Endogenous money supply; circuit theories; monetary equilibrium and disequilibrium; credit money; fundamentalist Keynesism; structuralism;

    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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