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Monetární nerovnováha v teorii endogenních peněz
[Monetary Disequilibrium in the Theory of Endogenous Money]

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  • Jan Korda

Abstract

The article deals with monetary disequilibrium in the theory of endogenous money. In new consensus economics, monetary disequilibrium is not considered whereas money is endogenous and passive. In post-Keynesian economics, there is an explicit discussion about reconciliation of money demand and supply. Based on careful distinction between money and credit markets, it is argued that monetary disequilibrium can occur even when money is endogenous and therefore money is endogenous and active. This is because of insufficiency of reflux mechanism. The article suggests ways in which new consensus should be supplemented to incorporate this issue. This is also important for monetary policy otherwise a part of transmission mechanism is left out.

Suggested Citation

  • 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.
    • Handle: RePEc:prg:jnlpol:v:2011:y:2011:i:5:id:814:p:680-705
    DOI: 10.18267/j.polek.814
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    More about this item

    Keywords

    Post-Keynesian economics; endogenous money; monetary disequilibrium; new consensus economics; reflux mechanism;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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