IDEAS home Printed from https://ideas.repec.org/a/ibn/ijbmjn/v11y2016i7p1.html
   My bibliography  Save this article

The Ethics Inside the Monetary Circuit: How Bank’s Social Responsibility Affects Money Creation

Author

Listed:
  • Nadia Oliva
  • Andrea Pacella

Abstract

The paper aims to introduce ethical remarks into the monetary circuit (or monetary theory of production)approach in order to study the mechanism of money creation when banks discriminate production on an ethicalplane. By the micro-foundation of the banks’ and firms’ behaviour, it will be shown that the ethicaldiscrimination of firms by banks is implemented by the differentiation of the mark-ups on the loan rate and howthis discrimination leads the system to create different credit markets according to the capacity (or willingness)of firms to satisfy (or not) the ethical claims of the banks.

Suggested Citation

  • Nadia Oliva & Andrea Pacella, 2016. "The Ethics Inside the Monetary Circuit: How Bank’s Social Responsibility Affects Money Creation," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(7), pages 1-1, June.
    • Handle: RePEc:ibn:ijbmjn:v:11:y:2016:i:7:p:1
    as

    Download full text from publisher

    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/download/57660/32535
    Download Restriction: no
    File URL: http://www.ccsenet.org/journal/index.php/ijbm/article/view/57660
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadia Oliva & Andrea Pacella, 2016. "Does Firms¡¯ Social Responsibility Counteract Some Critical Effects of Labor Market Flexibility?," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(1), pages 109-120, March.
    2. Forges Davanzati, Guglielmo & Pacella, Andrea, 2008. "Minimum Wage, Credit Rationing and Unemployment in a Monetary Economy," European Journal of Economic and Social Systems, Lavoisier, vol. 21(2), pages 179-194.
    3. Guglielmo Forges DavanzatI & Andrea Pacella & Rosario Patalano, 2015. "The Keynesian Features of Graziani's Monetary Theory of Production and Some Unresolved Issues," Review of Political Economy, Taylor & Francis Journals, vol. 27(4), pages 565-584, October.
    4. 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.
    5. Marc Lavoie, 2014. "Post-Keynesian Economics: New Foundations," Post-Print hal-01343652, HAL.
    6. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    7. Alain Parguez, 2010. "Lies and Truth About the Financial Crisis in the Eurozone," International Journal of Political Economy, Taylor & Francis Journals, vol. 39(4), pages 31-55.
    8. repec:cup:cbooks:9780521812115 is not listed on IDEAS
    9. Giuseppe Fontana & Mark Setterfield, 2009. "Macroeconomics, endogenous money and the contemporary financial crisis: a teaching model," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 1(1/2), pages 130-147.
    10. Guglielmo Forges Davanzati & Andrea Pacella, 2010. "Emulation, indebtedness and income distribution: A monetary theory of production approach," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(1), pages 147-165.
    11. Bossone, Biagio, 2001. "Circuit theory of banking and finance," Journal of Banking & Finance, Elsevier, vol. 25(5), pages 857-890, May.
    12. Louis-Philippe Rochon & Sergio Rossi (ed.), 2003. "Modern Theories of Money," Books, Edward Elgar Publishing, number 2506.
    13. Forges Davanzati, Guglielmo & Tortorella Esposito, Guido, 2010. "Low Wages, Private Indebtedness, and Crisis A Monetary-Theory-of-Production Approach," European Journal of Economic and Social Systems, Lavoisier, vol. 23(1), pages 25-44.
    14. Forges Davanzati, Guglielmo & Pacella, Andrea, 2013. "The profits-investments puzzle: A Post Keynesian-Institutional interpretation," Structural Change and Economic Dynamics, Elsevier, vol. 26(C), pages 1-13.
    15. Riccardo Bellofiore & Guglielmo Forges Davanzati & Riccardo Realfonzo, 2000. "Marx Inside the Circuit: Discipline device, wage bargaining and unemployment in a sequential monetary economy," Review of Political Economy, Taylor & Francis Journals, vol. 12(4), pages 403-417.
    16. Louis-Philippe Rochon & Sergio Rossi, 2007. "Central Banking and Post-Keynesian Economics," Review of Political Economy, Taylor & Francis Journals, vol. 19(4), pages 539-554.
    17. Fumagalli, Andrea & Lucarelli, Stefano, 2008. "Money and Technological Change: The Role of Financing in the Process of Evolution: Introduction," European Journal of Economic and Social Systems, Lavoisier, vol. 21(2), pages 151-163.
    18. Riccardo Bellofiore & Riccardo Realfonzo, 1997. "Finance and the Labor Theory of Value," International Journal of Political Economy, Taylor & Francis Journals, vol. 27(2), pages 97-118, June.
    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. Duccio Cavalieri, 2004. "On Some Equilibrium and Disequilibrium Theories of Endogenous Money: A Structuralist View," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 12(3), pages 51-83.
    2. Guglielmo Forges Davanzati, 2014. "Unemployment benefits, the 'added worker effect' and income distribution in a monetary economy," Working Papers PKWP1402, Post Keynesian Economics Society (PKES).
    3. Juan Hernández Andreu & Guido Tortorella Expósito, 2014. "Incertidumbre, ciclo económico y crisis según el enfoque continuista del pensamiento keynesiano [Uncertainty, economic cycles and economic crises according to the continuism approach of Keynesian t," Iberian Journal of the History of Economic Thought, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Dpto. Historia e Instituciones Económicas I., vol. 1(1), pages 44-72, September.
    4. SODOKIN, Koffi, 2006. "Functional and structural complementarities of banks and microbanks in L.D.Cs," LEG - Document de travail - Economie 2006-10, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne.
    5. Levrero, Enrico Sergio & Deleidi, Matteo, 2017. "The money creation process: A theoretical and empirical analysis for the US," MPRA Paper 81970, University Library of Munich, Germany.
    6. Kurt, Ozan Ekin, 2022. "Effects of interest rates on functional income distribution, capacity utilization, capital accumulation and profit rates in France: A post-Kaleckian econometric analysis," EconStor Preprints 251003, ZBW - Leibniz Information Centre for Economics.
    7. Eckhard Hein & Valeria Jimenez, 2022. "The macroeconomic implications of zero growth: a post-Keynesian approach," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 19(1), pages 41-60, April.
    8. 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.
    9. Eckhard Hein, 2005. "Finanzstruktur und Wirtschaftswachstum - theoretische und empirische Aspekte," Macroeconomics 0508014, University Library of Munich, Germany.
    10. Eckhard Hein, 2019. "Karl Marx: an early post-Keynesian? A comparison of Marx's economics with the contributions by Sraffa, Keynes, Kalecki and Minsky," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 16(2), pages 238-259, September.
    11. Sergio Cesaratto, 2016. "La financiación inicial y final en el circuito monetario y la teoría de la demanda efectiva," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(35), pages 47-78, July-Dece.
    12. Marcello MESSORI & Alberto ZAZZARO, 2004. "Monetary profits within the circuit: Ponzi finance oer "mors tua, vita mea"?," Working Papers 200, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Azadeh Rahimi & Ba M. Chu & Marc Lavoie, 2017. "Linear and Non-Linear Granger Causality Between Short-Term and Long-Term Interest Rates: A Rolling Window Strategy," Metroeconomica, Wiley Blackwell, vol. 68(4), pages 882-902, November.
    14. Nazim Kadri Ekinci, 2018. "Credit, Capital Flows and Monetary Policy: A Post-Keynesian Analysis," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 4(2), pages 55-74, December.
    15. Bibi, Samuele & Canelli, Rosa, 2023. "The interpretation of CBDC within an endogenous money framework," Research in International Business and Finance, Elsevier, vol. 65(C).
    16. Greg Hannsgen & Tai Young-Taft, 2015. "Inside Money in a Kaldor-Kalecki-Steindl Fiscal Policy Model: The Unit of Account, Inflation, Leverage, and Financial Fragility," Economics Working Paper Archive wp_839, Levy Economics Institute.
    17. Guglielmo Forges Davanzati & Lucia Mongelli, 2017. "Does Rising Unemployment Lead To Policies Of Labour Flexibility? The Italian Case (1990 – 2013)," Working Papers 0026, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    18. Giuseppe Fontana & Andrea Pacella & Riccardo Realfonzo, 2017. "Does fiscal policy affect the monetary transmission mechanism? A monetary theory of production (MTP) response to the new consensus macroeconomics (NCM) perspective," Metroeconomica, Wiley Blackwell, vol. 68(2), pages 378-395, May.
    19. Reddy, Niall, 2024. "“Downsize And Distribute” Or “Merge And Monopolize”? A Critique Of Corporate Financialization Theories," SocArXiv 2zy5h, Center for Open Science.
    20. Bossone, Biagio, 2021. "Commercial bank seigniorage and the macroeconomy," International Review of Financial Analysis, Elsevier, vol. 76(C).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:ijbmjn:v:11:y:2016:i:7:p:1. 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: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    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.