The Money Supply

  • D. Gareth Thomas


The analysis will involve a tripartite system of agents in the form of depositors (which includes households and firms), retail banks and the monetary authorities in determining the money supply process within the economic system. It is the interaction of these economic actors that determines the money supply process in the form a monetary multiplier that supports the real economy.


Depositors Money supply Monetary multiplier Economy 

References and Further Reading

  1. Clower, R. W. (1967). A Reconsideration of the Microfoundations of Monetary Policy. Western Economic Journal (Now Economic Inquiry), 6, 1–9. In R. W. Clower (Ed.) (1969), Monetary Theory: Selecting Readings (pp. 202–211). London: Penguin Books.Google Scholar
  2. Howells, P. (1995). The Demand for Endogenous Money. Journal of Post Keynesian Economics, 18(1), 89–106.CrossRefGoogle Scholar
  3. Keiding, H. (2016). Economics of Banking. London: Palgrave Macmillan.CrossRefGoogle Scholar
  4. King, R. G., & Plosser, C. I. (1984, June). Money, Credit and Prices in a Real Business Cycle. American Economic Review, 74, 363–380.Google Scholar
  5. McLeay, M., Radia, A., & Thomas, R. (2014). Money Creation in the Modern Economy. Bank of England Quarterly Bulletin, 54(1), 4–13.Google Scholar
  6. Minsky, H. P. (1975). John Maynard Keynes. New York: Macmillan Press Ltd.CrossRefGoogle Scholar
  7. Wicksell, K. (1936). Interest and Prices: A Study of the Causes Regulating the Value of Money. London: Published on behalf of the Royal Economic Society, Macmillan.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • D. Gareth Thomas
    • 1
  1. 1.Department of Accounting, Finance and EconomicsUniversity of Hertfordshire Business SchoolHatfieldUK

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