1. Endogenous Money: A Note on Some Post-Keynesian Controversies
- Author
-
Bill Lucarelli
- Subjects
Macroeconomics ,Endogenous money ,Keynesian economics ,Political Science and International Relations ,Economics, Econometrics and Finance (miscellaneous) ,Liquidity preference ,Economics ,Post-Keynesian economics ,Involuntary unemployment ,Financial instability - Abstract
Keynes's theory of liquidity preference sought to illuminate the essential properties of money under the conditions of uncertainty that often lead to involuntary unemployment. Subsequent Post-Keynesian literature built upon this concept to show that a deregulated financial system could induce phases of endemic financial instability and crises. Keynes's finance motive provides an important starting point in Post-Keynesian theories of endogenous money. This article examines the controversies between two major contending analytical approaches, the Horizontalist and Structuralist schools.
- Published
- 2013