IDEAS home Printed from https://ideas.repec.org/a/lde/journl/y2004i61p35-51.html
   My bibliography  Save this article

Theories of Money Creation: From Post-keynesians to Circuitists. Review and Prospects

Author

Listed:
  • Joanna Bauvert

    (Centre d'études interdisciplinaires Walras-Pareto, BFSH1, Lausanne University 1015 Lausanne-Dorigny, Suisse)

Abstract

Contrary to the neo-classical position, post-keynesians and circuitists developed the endogenous money approach, emphasising the function of banks in the creation of money and considering that the interest rate is exogenous (fixed by the Central Bank). Both, Post-keynesians and Circuitists, develop their arguments using some of Keynes' insights: the “finance motive”, his conception of credit, the principle of effective demand and the role of uncertainty. Because of this common background the frontier between these currents of thought is fuzzy and changing. Therefore, it is often difficult to appreciate the differences between them

Suggested Citation

  • Joanna Bauvert, 2004. "Theories of Money Creation: From Post-keynesians to Circuitists. Review and Prospects," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 61, pages 35-51, Julio-Dic.
    • Handle: RePEc:lde:journl:y:2004:i:61:p:35-51
    as

    Download full text from publisher

    File URL: https://revistas.udea.edu.co/index.php/lecturasdeeconomia/issue/view/326
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mata, Tiago, 2004. "Constructing Identity: The Post Keynesians and the Capital Controversies," Journal of the History of Economic Thought, Cambridge University Press, vol. 26(2), pages 241-259, June.
    2. Louis-Philippe Rochon & Sergio Rossi (ed.), 2003. "Modern Theories of Money," Books, Edward Elgar Publishing, number 2506.
    3. Thomas Palley, 2007. "Asset-based Reserve Requirements: A Response," Review of Political Economy, Taylor & Francis Journals, vol. 19(4), pages 575-578.
    4. Seccareccia, M, 1996. "Pricing, Investment and the Financing of Production Within the Framework of the Monetary Circuit: Some Preliminary Evidence," Working Papers 9609e, University of Ottawa, Department of Economics.
    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. Brett Fiebiger & Scott Fullwiler & Stephanie Kelton & L. Randall Wray, 2012. "Modern Monetary Theory: A Debate," Working Papers wp279, Political Economy Research Institute, University of Massachusetts at Amherst.
    2. Biagio Bossone, 2021. "Bank Seigniorage in a Monetary Production Economy," Working Papers PKWP2111, Post Keynesian Economics Society (PKES).
    3. Pavlina R. Tcherneva, 2008. "The Return of Fiscal Policy: Can the New Developments in the New Economic Consensus Be Reconciled with the Post-Keynesian View?," Economics Working Paper Archive wp_539, Levy Economics Institute.
    4. Campiglio, Emanuele, 2016. "Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy," Ecological Economics, Elsevier, vol. 121(C), pages 220-230.
    5. Jesper Jespersen, 2012. "Keynes’s General Theory after 75 years: time to re-read and reflect," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Keynes’s General Theory for Today, chapter 8, pages 131-150, Edward Elgar Publishing.
    6. Thomas I. Palley, 2015. "Monetary Policy at the Zero Lower Bound and After: A Reassessment of Quantitative Easing and Critique of the Federal Reserve's Proposed Exit Strategy," Metroeconomica, Wiley Blackwell, vol. 66(1), pages 1-27, February.
    7. 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.
    8. Roger E. Backhouse, 2013. "Understanding Mark Blaug's attitude towards Sraffian economics," Chapters, in: Marcel Boumans & Matthias Klaes (ed.), Mark Blaug: Rebel with Many Causes, chapter 11, pages 146-158, Edward Elgar Publishing.
    9. Giuseppe Fontana & Bill Gerrard, 2006. "The future of Post Keynesian economics," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 59(236), pages 49-80.
    10. Krug, Sebastian, 2015. "The interaction between monetary and macroprudential policy: Should central banks "lean against the wind" to foster macrofinancial stability?," Economics Working Papers 2015-08, Christian-Albrechts-University of Kiel, Department of Economics.
    11. Daniel Detzer, 2012. "New instruments for banking regulation and monetary policy after the crisis," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 9(2), pages 233-254.
    12. Thomas I. Palley, 2015. "The Federal Reserve and Shared Prosperity: A Guide to the Policy Issues and Institutional Challenges," IMK Working Paper 146-2015, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    13. Bruno Bonizzi, 2013. "Capital Flows to Emerging Markets: An alternative Theoretical Framework," Working Papers 186, Department of Economics, SOAS University of London, UK.
    14. Elisa Palagi & Mauro Napoletano & Andrea Roventini & Jean-Luc Gaffard, 2017. "Inequality, Redistributive Policies and Multiplier Dynamics in an Agent-based Model with Credit Rationing," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 367-387, November.
    15. Scott T. Fullwiler, 2013. "An endogenous money perspective on the post-crisis monetary policy debate," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(2), pages 171-194, January.
    16. Greg Hannsgen, 2004. "Borrowing Alone The Theory and Policy Implications of the Commodification of Finance," Finance 0402011, University Library of Munich, Germany.
    17. Eckhard Hein, 2010. "Shareholder Value Orientation, Distribution And Growth—Short‐ And Medium‐Run Effects In A Kaleckian Model," Metroeconomica, Wiley Blackwell, vol. 61(2), pages 302-332, May.
    18. Ashima Goyal, 2011. "Monetary operating procedures: Principles and the Indian process," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-028, Indira Gandhi Institute of Development Research, Mumbai, India.
    19. Olivier Allain, 2007. "Monetary circulation, the paradox of profits, and the velocity of money," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00196485, HAL.
    20. Olivier Allain, 2007. "Monetary circulation, the paradox of profits, and the velocity of money," Post-Print halshs-00196485, HAL.

    More about this item

    Keywords

    money; post-keynesian;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

    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:lde:journl:y:2004:i:61:p:35-51. 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: Carlos Andrés Vasco Correa (email available below). General contact details of provider: https://edirc.repec.org/data/deantco.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.