IDEAS home Printed from https://ideas.repec.org/p/wop/monaco/0183.html
   My bibliography  Save this paper

The Loans Standard Model of Credit Money

Author

Listed:
  • Rohan Baxter

    (Monash University, Department of Computer Science)

Abstract

The Loans Standard (LS) model is an example of a credit monetary system. The LS model encapsulates the credit money characteristics which have been identified in the present monetary system, but abstracts away from other aspects such as commodity and fiat money. In the resulting purely credit monetary model, the implications for interest rates, monetary inflation and the structure of monetary institutions are explored. The LS model can be used to help clarify some of the endogenous credit money issues raised by Moore, Wray, Minsky and others.

Suggested Citation

  • Rohan Baxter, 1993. "The Loans Standard Model of Credit Money," Working Papers 93/183, Monash University, Department of Compter Studies.
    • Handle: RePEc:wop:monaco:0183
    as

    Download full text from publisher

    File URL: ftp://ftp.repec.org/RePEc/wop/monaco/monaco0183.ps
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gary A. Dymski, 1992. "A “New View” of the Role of Banking Firms in Keynesian Monetary Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(3), pages 311-320, March.
    2. Philip Arestis (ed.), 1988. "Post-Keynesian Monetary Economics," Books, Edward Elgar Publishing, number 15.
    3. Hyman P. Minsky, 1986. "The Evolution of Financial Institutions and the Performance of the Economy," Journal of Economic Issues, Taylor & Francis Journals, vol. 20(2), pages 345-353, June.
    4. John F. Henry & L. Randall Wray, 1998. "Economic Time," Macroeconomics 9811004, University Library of Munich, Germany.
    5. Basil J. Moore, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 479-487, March.
    6. Gary A. Dymski, 1988. "A Keynesian Theory of Bank Behavior," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(4), pages 499-526, July.
    7. Moore, Basil J, 1988. "The Endogeneity of Money: A Comment," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pages 291-294, August.
    8. L.Randall Wray, 1991. "Saving, Profits, and Speculation in Capitalist Economies," Journal of Economic Issues, Taylor & Francis Journals, vol. 25(4), pages 951-975, December.
    9. Basil J. Moore, 1991. "Money Supply Endogeneity: “Reserve Price Setting” or “Reserve Quantity Setting”?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 13(3), pages 404-413, March.
    10. Basil J. Moore, 1983. "Unpacking the Post Keynesian Black Box: Bank Lending and the Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 5(4), pages 537-556, July.
    11. Basil J. Moore, 1991. "Has the Demand for Money Been Mislaid? A Reply to “Has Moore become Too Horizontal?”," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(1), pages 125-133, September.
    12. Laidler, David, 1984. "The 'Buffer Stock' Notion in Monetary Economics," Economic Journal, Royal Economic Society, vol. 94(376a), pages 17-34, Supplemen.
    13. Basil J. Moore, 1989. "A Simple Model of Bank Intermediation," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 12(1), pages 10-28, September.
    14. Ann-Marie Meulendyke, 1988. "Can the Federal Reserve Influence Whether the Money Supply Is Endogenous? A Comment on Moore," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(3), pages 390-397, March.
    15. Paul Davidson, 1991. "Controversies in Post Keynesian Economics," Books, Edward Elgar Publishing, number 121.
    16. De Vroey, Michel, 1984. "Inflation: A Non-monetarist Monetary Interpretation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 8(4), pages 381-399, December.
    17. Arne Heise, 1992. "Commercial Banks in Macroeconomic Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(3), pages 285-296, March.
    18. Marc Lavoie, 1984. "The Endogenous Flow of Credit and the Post Keynesian Theory of Money," Journal of Economic Issues, Taylor & Francis Journals, vol. 18(3), pages 771-797, September.
    19. Cunningham, Thomas J, 1992. "Some Real Evidence on the Real Bills Doctrine versus the Quantity Theory," Economic Inquiry, Western Economic Association International, vol. 30(2), pages 371-383, April.
    20. Joseph E. Stiglitz, 1988. "Money, Credit, and Business Fluctuations," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 307-322, December.
    21. Paul Davidson, 1986. "Finance, Funding, Saving, and Investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(1), pages 101-110, September.
    22. L. R. Wray, 1990. "Money and Credit in Capitalist Economies," Books, Edward Elgar Publishing, number 474.
    23. C. A. E. Goodhart, 1991. "Is the concept of an Equilibrium Demand for Money Meaningful? A Reply to “Has the Demand for Money been Mislaid?”," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 14(1), pages 134-136, September.
    24. King, Robert G & Plosser, Charles I, 1984. "Money, Credit, and Prices in a Real Business Cycle," American Economic Review, American Economic Association, vol. 74(3), pages 363-380, June.
    25. David I. Fand, 1988. "On the Endogenous Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(3), pages 386-389, March.
    26. repec:bla:ecorec:v:64:y:1988:i:187:p:307-22 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Culham & John E. King, 2013. "Horizontalists and Verticalists after 25 years," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 391—405-3, October.
    2. M. Lopreite, 2012. "The endogenous money hypothesis and securitization: the Euro area case (1999-2010)," Economics Department Working Papers 2012-EP02, Department of Economics, Parma University (Italy).
    3. Alexander Villarraga O., 2009. "La oferta de dinero y sus vínculos con el dinero inside y el dinero outside," Revista de Economía del Caribe 7118, Universidad del Norte.
    4. Jan Korda, 2011. "Monetární nerovnováha v teorii endogenních peněz [Monetary Disequilibrium in the Theory of Endogenous Money]," Politická ekonomie, Prague University of Economics and Business, vol. 2011(5), pages 680-705.
    5. Joerg Bibow, 2005. "Liquidity Preference Theory Revisited—To Ditch or to Build on It?," Method and Hist of Econ Thought 0508003, University Library of Munich, Germany.
    6. Goodhart, Charles, 1989. "The Conduct of Monetary Policy," Economic Journal, Royal Economic Society, vol. 99(396), pages 293-346, June.
    7. Louis-Philippe Rochon & Sergio Rossi, 2013. "Endogenous money: the evolutionary versus revolutionary views," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(2), pages 210-229, January.
    8. Louis-Philippe Rochon, 2001. "Cambridge's Contribution to Endogenous Money: Robinson and Kahn on credit and money," Review of Political Economy, Taylor & Francis Journals, vol. 13(3), pages 287-307.
    9. Sergio Cesaratto, 2017. "Initial and Final Finance in the Monetary Circuit and the Theory of Effective Demand," Metroeconomica, Wiley Blackwell, vol. 68(2), pages 228-258, May.
    10. Jussi Ahokas, 2012. "Geographies of Monetary Economy and the European economic crisis," ERSA conference papers ersa12p437, European Regional Science Association.
    11. Hein, Eckhard, 1999. "Interest Rates, Income Shares, and Investment in a Kaleckian Model," MPRA Paper 18607, University Library of Munich, Germany.
    12. Giuseppe Fontana, 2004. "Rethinking Endogenous Money: A Constructive Interpretation Of The Debate Between Horizontalists And Structuralists," Metroeconomica, Wiley Blackwell, vol. 55(4), pages 367-385, November.
    13. Gary A. Dymski, 1990. "Money and Credit in Radical Political Economy: A Survey of Contemporary Perspectives," Review of Radical Political Economics, Union for Radical Political Economics, vol. 22(2-3), pages 38-65, June.
    14. Rahimi , Azadeh, 2019. "The Endogenous or Exogenous Nature of Money Supply: Case of Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 14(1), pages 27-40, January.
    15. Eckhard Hein, 2006. "Money, interest and capital accumulationin Karl Marx's economics: a monetary interpretation and some similaritiesto post-Keynesian approaches," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(1), pages 113-140.
    16. Eckhard Hein, 2007. "Interest Rate, Debt, Distribution And Capital Accumulation In A Post‐Kaleckian Model," Metroeconomica, Wiley Blackwell, vol. 58(2), pages 310-339, May.
    17. Thomas I. Palley, 2013. "Horizontalists, verticalists, and structuralists: the theory of endogenous money reassessed," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 406—424-4, OCT.
    18. Martin Schmidt, 2003. "Monetary dynamics: a market approach," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 139-152.
    19. Heise, Arne, 2018. "Postkeynesianismus: Ein heterodoxer Ansatz auf der Suche nach einer Fundierung," ZÖSS-Discussion Papers 69, University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS).
    20. Michaelides, Panayotis G. & Milios, John G. & Konstantakis, Konstantinos N. & Tarnaras, Panayiotis, 2015. "Quantity-of-money fluctuations and economic instability: empirical evidence for the USA (1958–2006)," MPRA Paper 90145, University Library of Munich, Germany.

    More about this item

    Keywords

    monetary theory; interest rates; credit money;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wop:monaco:0183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Thomas Krichel (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.