Giving the opposition its say.
There are quite a few arguments in economics which are entirely superfluous. One of them is over whether central banks determine the money supply or whether it is determined by the banking sector. I have dealt with this previously (following along on the coat tails of Rowe and Sumner) but as I work through Keen’s lectures on “endogenous money” (see primarily 06 part 2 and 07 part 1) I can’t help but notice that this issue seems to be central to much of his criticisms of mainstream economics. So in pursuit of my ultimate goal of rescuing the theory of money and debt from the Marxists–er, I mean “post Keynesians”–and folding it somehow neatly into regular old-fashioned economics, let me first address this whole endogenous/exogenous ball of wax.Free Radical
Endogenous or Exogenous Money
2 comments:
This was an excellent article.
I've heard It all before. Not even Bank of England paper can make the monetarists change their flawed theory about money. He wonders what determines the price level :)
Certainly not the interest rate.
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