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The Monetary Theory of Kalecki and Minsky

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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
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    File URL: http://www.soas.ac.uk/economics/research/workingpapers/file74890.pdf
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    References listed on IDEAS

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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.

    More about this item

    Keywords

    Keynes; Kalecki; Minsky; Money;

    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
    • 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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