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A contribution to the Quantity Theory of Disaggregated Credit

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  • Clavero, Borja

Abstract

In my view, Richard Werner is sitting on a pot of gold. In Werner (2014), he has shown the tremendous potential his ‘Quantity Theory of Credit’ has to reorient public policy and stimulate nominal GDP. Yet, his ideas do not seem to take root. In this paper my aim is to refine his theory and provide some improvements by constructing new empirical proxies of ‘bank credit for GDP transactions’—a quite arduous and open-ended task. I conclude that the theory is very promising, but it is still in a stage of maturation.

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  • Clavero, Borja, 2017. "A contribution to the Quantity Theory of Disaggregated Credit," MPRA Paper 76657, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76657
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    More about this item

    Keywords

    bank credit; Quantity Theory of Credit; credit-growth nexus; banking and the economy; disaggregation of credit; credit creation; flow of funds; national accounts;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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