Merijn Knibbe — Outside the neoclassical realm, ‘endogenous money’ is not heterodox. A response to the ideas of Krugman

The idea of endogenous money is consistent with manuals on monetary statistics which, using the ‘quadruple accounting method’ (your debt is my asset) explain how money is measured. Here, an ECB example. The monthly press release of the ECB is in fact consistent with ‘endogenous money’ idea. ‘Quadruple accounting’ is supposed to be ‘Post Keynesian’. Help. It is just basic, plain accounting, this most basic, method of keeping track of debts. It’s not the problem of the heterodox that neoclassicals did not master this. The idea that ‘credit’ is in fact a very complicated and tangled net between ‘agents’ which does not only define the relation between these agents but also affects their ‘reputation’ and therewith the agents themselves may be somewhat disturbing to the world of freely floating neoclassical atomicons – but again, that’s not the problem of the so called ‘heterodox’.

 Real-World Economics Review Blog
Outside the neoclassical realm, ‘endogenous money’ is not heterodox. A response to the ideas of Krugman
Merijn Knibbe