Abstract
Although quite a lot has now been written about money and credit by Post Keynesian authors, the literature on the consequent monetary policy has been rather sparse. The objectives of this chapter are to gather the little that has been written on Post Keynesian monetary policy, and to identify a few general guidelines around which Post Keynesians could agree when it comes to non-specific monetary policy recommendations. In the following, the term Post Keynesian is meant to cover contributions on money and inflation from the so-called American Post Keynesians, as well as those of the Cambridge (England) Keynesians, and those of the neo-Ricardians. It will be obvious that the views of the radical school are quite similar. I shall start by establishing how I view the links which exist between circuit theory and Post Keynesian economics.
I thank Ghislain Deleplace and my colleague Mario Seccareccia for their comments. Naturally, they cannot be held responsible for the remaining errors and omissions.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arnon, A. (1984), ‘The Transformation in Thomas Tooke’s Monetary Theory Reconsidered’, History of Political Economy, 16 (2), pp. 311–26.
Chick, V. (1986), ‘The Evolution of the Banking System and the Theory of Saving, Investment and Interest’, Economies et Sociétés, 20, pp. 111–26.
Cornwall, J. (1983), The Conditions for Economic Recovery (Oxford: Martin Robertson).
D’Autume, A. (1989), ‘La macroéconomie contemporaine’, in La science économique en France ( Paris; La Découverte ), pp. 16–30.
Davidson, P. (1972), Money and the Real World ( London: Macmillan).
Davidson, P. (1987), ‘Sensible Expectations and the Long-run Non-Neutrality of Money’, Journal of Post Keynesian Economics, 10, pp. 146–53.
De La Genière, R. (1981), ‘Les leçons de la politique monétaire’, Banque, 404, pp. 269–79.
Dow, J.C.R. and I.D. Saville (1988), A Critique of Monetary Policy: Theory and British Experience ( Oxford: Oxford University Press).
Dow, S.C. and P. Earl (1982), Money Matters ( Oxford: Mart in Robertson).
Dutt, A.K. (1990), Growth, Distribution and Uneven Development ( Cambridge: Cambridge University Press).
Dutt, A.K. and E.J. Amadeo (1993), ‘A Post Keynesian Theory of Growth, Interest and Money’, working paper.
Eichner, A.S. (1976), The Megacorp and Oligopoly ( Cambridge: Cambridge University Press).
Eichner, A.S. (1987), The Macrodynamics of Advanced Market Economies ( Armonk, NY: M.E. Sharpe).
Graziani, A. (1990), ‘The Theory of the Monetary Circuit’, Economies et Sociétés, 24, pp. 7–36.
Hicks, J. (1974), The Crisis of Keynesian Economics ( Oxford: Basil Blackwell).
Hotson, J.H. (1976), Stagflation and the Bastard Keynesians ( Waterloo: University of Waterloo Press).
Kahn, R. (1972), Selected Essays on Employment and Growth ( Cambridge: Cambridge University Press).
Kaldor, N. (1964), Essays on Economic Policy, vol. 1 ( London: Duckworth ).
Kaldor, N. (1982), The Scourge of Monetarism ( Oxford: Oxford University Press).
Kalecki, M. (1943), Selected Essays on the Dynamics of the Capitalist Economy ( Cambridge: Cambridge University Press).
Kleeks, M. (1971), Selected Essays on the Dynamics of the Capitalist Economy 1933–1970 ( Cambridge: Cambridge University Press ).
Keynes, J.M. (1936), The General Theory of Employment, Interest and Money ( London: Macmillan).
Kotz, D.M. (1987), ‘Radical Theories of Inflation’, in The Imperiled Economy, book 1 ( New York: Union for Radical Political Economics ), pp. 83–92.
Lavoie, M. (1985), ‘Credit Money: The Dynamic Circuit, Overdraft Economics, and Post Keynesian Economics’, in M. Jarsulic (ed.), Money and Macro Policy ( Hingham, MA: Kluwer Academic Publishers ).
Lavoie, M. (1990), ‘Le circuit dans la penseé post-keynésienne américaine’, Economie, 6, pp. 105–18.
Lavoie, M. (1993) ‘A Post-Classical View of Money, Interest, Growth and Distribution’, in G. Mongioui and C. Riihl (eds), Macroeconomic Theory: Diversity and Convergence ( Aldershot: Edward Elgar ), pp. 3–21.
Lavoie, M. and M. Seccareccia (1988), ‘Money, Interest and Rentiers: The Twilight of Rentier Capitalism’, in O.F. Hamouda and J. Smithin (eds), Keynes and Public Policy after Fifty Years, vol. 2 ( Aldershot: Edward Elgar ), pp. 145–58.
Le Bourva, J. (1962), ‘Création de la monnaie et multiplicateur de crédit’, Revue Économique, 13, (1), pp. 29–56.
Minsky, H.P. (1986), Stabilizing an Unstable Economy ( New Haven: Yale University Press).
Mishkin, F.S. (1984). ‘The Real Interest Rate: A Multi-Country Empirical Study’, Canadian Journal of Economics, 17 (2), pp. 283–311.
Moore, B.J. (1988), Horizontalists and Verticalists ( Cambridge: Cambridge University Press).
Moore, B.J. (1989), ‘On the Endogeneity of Money Once More’, Journal of Post Keynesian Economics, 11 (3), pp. 479–87.
Moore, B.J. (1995), ‘The Money Supply Process: A Histological Reinterpretation’, this volume.
Nell, E.J. (1986), ‘On Monetary Circulation and the Rate of Exploitation’, Thames Papers in Political Economy, Summer, pp. 1–35.
Niggle, C.J. (1991), ‘The Endogenous Money Supply Theory: An Institutionalist Appraisal’, Journal of Economic Issues, 25, pp. 137–51.
Parguez, A. (1987), ‘Introduction à l’économie des rentiers’, Economies et Sociétés, 23 (4), pp. 103–20.
Parker Foster, G. (1987), ‘Financing Investment’, Journal of Economic Issues, 21 (1), pp. 101–12.
Pasinetti, L.L. (1981), Structural Change and Economic Growth ( Cambridge: Cambridge University Press).
Pivetti, M. (1985), ‘On the Monetary Explanation of Distribution’, Political Economy, 1 (2), pp. 73–103.
Pollin, R. (1991), ‘Two Theories of Money Supply Endogeneity: Some Empirical Evidence’, Journal of Post Keynesian Economics, 13 (3), pp. 366–96.
Renversez, F. (1995), ‘Monetary Circulation and Monetary Economy’, this volume.
Roncaglia, A. (1985), ‘The Neo-Ricardian Approach and the Distribution of Income’, in A. Asimakopulos (ed.), Theories of Income Distribution ( Boston: Kluwer-Nijhoff, pp. 159–80 ).
Rousseas, S. (1986), Post-Keynesian Monetary Economics ( Armonk, NY: M.E. Sharpe).
Schmitt, B. (1972), Macroeconomic Theory ( Albeuve: Castella).
Terzi, A. (1986–7), ‘The Independence of Finance from Saving: A Flow-of-funds Interpretation’, Journal of Post Keynesian Economics 9 (2), pp. 188–97.
Weintraub, S. (1978), Capitalism’s Inflation and Unemployment Crisis ( Reading, MA: Addison Wesley).
Wojnilower, A.M. (1980), ‘The Central Role of Credit Crunches in Recent Financial History’, Brookings Papers on Economic Activity, 2, pp. 277–326.
Wood, A. (1978), A Theory of Pay ( Cambridge: Cambridge University Press).
Wray, L.R. (1988), ‘Profit Expectations and the Investment-saving Relation’, Journal of Post Keynesian Economics, 11 (1), pp. 131–47.
Wray, L.R. (1989), ‘Two Reviews of Basil Moore’, Journal of Economic Issues, 23 (4), pp. 1185–9.
Wray, L.R. (1990), Money and Credit in Capitalist Economies: The Endogenous Money Approach ( Aldershot: Edward Elgar).
Wulwick, N. (1987), ‘The Radcliffe Central Bankers’, Journal of Economic Studies, 14 (4), pp. 36–50.
Editor information
Editors and Affiliations
Copyright information
© 1996 Ghislain Deleplace and Edward J. Nell
About this chapter
Cite this chapter
Lavoie, M. (1996). Monetary Policy in an Economy with Endogenous Credit Money. In: Deleplace, G., Nell, E.J. (eds) Money in Motion. The Jerome Levy Economics Institute Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24525-3_21
Download citation
DOI: https://doi.org/10.1007/978-1-349-24525-3_21
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-24527-7
Online ISBN: 978-1-349-24525-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)