Deleidi, M and Fontana, G orcid.org/0000-0002-8055-5326 (Cover date: 2019) Money Creation in the Eurozone: An Empirical Assessment of the Endogenous and the Exogenous Money Theories. Review of Political Economy, 31 (4). pp. 559-581. ISSN 0953-8259
Abstract
The aim of this paper is to strengthen our understanding of the money creation process in the Eurozone for 1999–2016 period, through an empirical assessment of two main monetary theories, namely the (Post Keynesian) endogenous money theory and the (Monetarist) exogenous money theory. By applying a VAR and VECM methodology, we analyse the causal relationship among monetary reserves (or monetary base), bank deposits and bank loans. Our empirical analysis supports several propositions of the Post Keynesian endogenous money theory since (i) bank loans determine bank deposits, and (ii) bank deposits in turn determine monetary reserves.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2020 Informa UK Limited, trading as Taylor & Francis Group. This is an author produced version of a journal article published in Review of Political Economy. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Endogenous money theory, exogenous money theory, Eurozone, Post Keynesian, Monetarist |
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: | 01 Jun 2020 10:11 |
Last Modified: | 11 Mar 2025 15:15 |
Status: | Published |
Publisher: | Taylor & Francis |
Identification Number: | 10.1080/09538259.2020.1737390 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:161396 |