Fontana, G orcid.org/0000-0002-8055-5326, Realfonzo, R and Veronese Passarella, M orcid.org/0000-0001-7652-5952 (2020) Monetary economics after the global financial crisis: what has happened to the endogenous money theory? European Journal of Economics and Economic Policies: Intervention, 17 (3). pp. 339-355. ISSN 2052-7764
Abstract
The 2010s have witnessed a new shift in central banking and, partially at least, in monetary economics and macroeconomic modelling. It is a fact that the endogenous money theory has been gradually clawing back popularity at the expense of the classical theory of interest rates, the financial intermediation view of banks, the money-multiplier story and the quantity theory of money. However, the loanable funds theory and the view of banks as pure financial intermediaries (sometimes coupled with the money-multiplier story) are still sometimes invoked. In addition, the dynamic process of creation, circulation and destruction of money is usually neglected. The point is that money endogeneity is still regarded by many mainstream economists as a mere empirical fact, not a key feature of capitalist market-based economies to be properly explained by a logically consistent theory. By contrast, dissenting economists have further advanced the endogenous money view through: (a) a generalised theory of the endogenous process of money creation; (b) the increasing popularity of modern monetary theory in the public debate; and (c) the development of aggregative stock–flow consistent models and agent-based stock–flow consistent models as an alternative to dynamic stochastic general equilibrium models.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020, the authors. The definitive, peer reviewed and edited version of this article is published in Fontana, G , Realfonzo, R and Veronese Passarella, M (2020) Monetary economics after the global financial crisis: what has happened to the endogenous money theory? European Journal of Economics and Economic Policies: Intervention. ISSN 2052-7764. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Endogenous money; exogenous money; quantitative easing; inflation targeting; modern monetary theory; stock–flow consistent models |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 29 Jan 2020 14:56 |
Last Modified: | 12 Aug 2021 00:38 |
Status: | Published |
Publisher: | Edward Elgar Publishing |
Identification Number: | 10.4337/ejeep.2020.0056 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:156194 |