Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

A criteria-based approach to the description of endogeneity and exogeneity of money

Vol. 25, Iss. 10, OCTOBER 2019

Received: 26 August 2019

Received in revised form: 9 September 2019

Accepted: 23 September 2019

Available online: 30 October 2019

Subject Heading: MONETARY AND CREDIT RELATIONS

JEL Classification: E12, E40, E51

Pages: 2359–2368

https://doi.org/10.24891/fc.25.10.2359

Lunyakov O.V. Financial University under Government of Russian Federation, Moscow, Russian Federation
OVLunyakov@fa.ru

https://orcid.org/0000-0002-9179-1180

Subject The article discusses the theoretical issues of endogeneity and exogeneity of money from the perspective of various economic schools.
Objectives The aim is to formalize the basics of the criterion-oriented approach for describing the endogeneity and exogeneity of money.
Methods I offer two approaches to consider the endogeneity and exogeneity of money. The first one rests on using the dichotomy. The second approach contains a wider range of variables (criteria), like the type of economy, fluctuations in economic activities, the state of economic system, time horizon, forms of money and innovation in general.
Results The criteria-based approach enabled to get a more comprehensive view to describe the sources of endogeneity and exogeneity of money, and, therefore, helped understand changes in the degree of endogeneity and exogeneity of money in the modern economy.
Conclusions In current conditions of dynamic development of the global financial market, the increase in innovative financial instruments and forms of money, the objective prerequisites are formed to endogenize the money supply and calibrate the corresponding monetary instruments.

Keywords: exogenous money, endogenous money, banking sector, post-Keynesian economics, monetarism

References:

  1. Friedman M. The Quantity Theory of Money – A Restatement. In Friedman M., Cagan P. Studies in the Quantity Theory of Money. Chicago, University of Chicago Press, 1956, pp. 3–21.
  2. Friedman M. A Program for Monetary Stability. The Millar Lectures. New York City, Fordham University Press, 1969.
  3. Kaldor N. The New Monetarism. Lloyds Bank Review, 1970, vol. 97, pp. 1–7.
  4. Kaldor N. The Scourge of Monetarism (Radcliffe Lectures). New York, Oxford, Oxford University Press, 1986, 136 p.
  5. Palley T. Money, Credit and Prices in a Kaldorian Macro Model. Journal of Post Keynesian Economics, 1991, vol. 14, no. 2, pp. 183–203. URL: Link
  6. Rochon L.-P. Cambridge's Contribution to Endogenous Money: Robinson and Kahn on credit and money. Review of Political Economy, 2001, vol. 13, iss. 3, pp. 287–307. URL: Link
  7. Wray R.L. Alternative Approaches to Money and Interest Rates. Journal of Economic Issues, 1992, vol. 26, no. 4, pp. 1145–1178. URL: Link
  8. Pollin R. Two Theories of Money Supply Endogeneity: Some Empirical Evidence. Journal of Post Keynesian Economics, 1991, vol. 13, no. 3, pp. 366–396. URL: Link
  9. Lavoie M. Jacques Le Bourva's Theory of Endogenous Credit-Money. Review of Political Economy, 1992, vol. 4, iss. 4, pp. 436–446. URL: Link
  10. Lavoie M. Monetary Policy in an Economy with Endogenous Credit Money. In: Nell E., Deleplace G. Money in Motion. London, Palgrave Macmillan, 1996, pp. 532–545. URL: Link
  11. Wray R.L. Keynesian Monetary Theory: Liquidity Preference or Black Box Horizontalism? Journal of Economic Issues, 1995, vol. 29, no. 1, pp. 273–282. URL: Link
  12. Moore B. The Endogenous Money Supply. Journal of Post Keynesian Economics, 1988, vol. 10, no. 3, pp. 372–385. URL: Link
  13. Desai M. Endogenous and Exogenous Money. In: Eatwell J., Milgate M., Newman P. (eds) Money. London, The New Palgrave Series, Palgrave Macmillan, 1989, pp. 146–150.
  14. Blaug M. 100 velikikh ekonomistov do Keinsa [Great Economists since Keynes: An Introduction to the Lives and Works of One Hundred Modern Economists]. St. Petersburg, Ekonomicheskaya shkola Publ., 2008, 352 p.
  15. Palley T. Endogenous Money: What it Is and Why it Matters. Metroeconomica, 2002, vol. 53, pp. 152–180. URL: Link
  16. Palley T. The Theory of Endogenous Money and the LM Schedule: Prelude to a Reconstruction of ISLM. Revista de Economia Política, 2017, vol. 37, no. 1, pp. 3–22. URL: Link
  17. De Cecco M. Changing Money: Financial Innovations in Developed Countries. Oxford, Basil Blackwell, 1987, 329 p.
  18. Bhatt V.V. On Financial Innovations and Credit Market Evolution. World Development, 1988, vol. 16, iss. 2, pp. 281–292. URL: Link90142-8
  19. Jahan S., Papageorgiou C. What is Monetarism? Finance & Development, 2014, vol. 51, no. 1, pp. 38–39. URL: Link

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 25, Iss. 10
October 2019

Archive