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Advances in Endogenous Money Analysis

Edited by Louis-Philippe Rochon, Full Professor of Economics, Laurentian University, Canada and Co-Editor, Review of Keynesian Economics and Sergio Rossi, Full Professor of Economics, University of Fribourg, Switzerland
The endogenous nature of money is a fact that has been recognized rather late in monetary economics. Today, it is explained most comprehensively by the theory of money in post-Keynesian monetary theory. The expert contributors to this enlightening book revisit long-standing debates on the endogeneity of money from the position of both horizontalists and structuralists, and prescribe new areas of research and debate for post-Keynesian scholars to explore.
Extent: 464 pp
Hardback Price: $175.00 Web: $157.50
Publication Date: 2017
ISBN: 978 1 84542 943 0
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  • Economics and Finance
  • Money and Banking
  • Post-Keynesian Economics
The endogenous nature of money is a fact that has been recognized rather late in monetary economics. Today, it is explained most comprehensively by post-Keynesian economic analysis. This book revisits the nature of money and its endogeneity, featuring a number of the protagonists who took part in the original debates in the 1980s and 1990s, as well as new voices and analyses. Expert contributors revisit long-standing discussions from the position of both horizontalism and structuralism, and prescribe new areas of research and debate for post-Keynesian scholars to explore.

Louis-Philippe Rochon and Sergio Rossi eloquently situate the nature of money and its endogeneity in an historical context, before bringing together an engaging array of chapters written by contemporary leading scholars. These chapters put forth detailed analyses of money creation; central bank operations and the role of monetary authorities; a link between interest rates and income distribution; a stock-flow analysis of monetary economies of production; and finally, a reinterpretation of horizontalism and structuralism.

Post-Keynesian and heterodox economists, institutionalist economists, scholars of money and finance, and graduate students studying economics will all find this an enlightening read.
Contributors: A. Cottrell, P. Dalziel, P. Docherty, G. Fontana, S.T. Fullwiler, E. Hein, J.E. King, J. Knodell, M. Lavoie, N. Levy-Orlik, C.J. Niggle, T.I. Palley, Y. Panagopoulos, L.-P. Rochon, C. Rogers, S. Rossi, M. Sawyer, M. Setterfield, J. Smithin, A. Spiliotis
Contents:

Introduction: the need to discuss endogenous money again
Louis-Philippe Rochon and Sergio Rossi

PART I ENDOGENOUS MONEY IN THE REAL WORLD
1. Money endogeneity before central banking: perspectives from monetary history
Jane Knodell

2. Modern central bank operations: the general principles
Scott T. Fullwiler

3. The theory of endogenous money and the LM schedule: prelude to a reconstruction of IS–LM
Thomas I. Palley

4. Money and interest rate determination in a system with no reserve requirements
Sergio Rossi

5. New insights on the money-supply-endogeneity debate and the new ‘equity’ multiplier: some evidence from the euro area
Yannis Panagopoulos and Aristotelis Spiliotis

6. Liquidity, finance, and economic growth: some unresolved issues for developing economies
Noemi Levy-Orlik

PART II ENDOGENOUS MONEY IN THE ECONOMIC THOUGHT
7. Money endogeneity and the quantity theory: the case of commodity-money
Allin Cottrell

8. Nicholas Kaldor and the war on monetarism
John E. King

9. The principle of effective demand and the state of post-Keynesian monetary economics
Colin Rogers

10. Endogenous money and the tyranny of demand and supply
Malcolm Sawyer

11. An evolutionary–institutionalist re-appraisal of the endogenous-money-supply theory
Christopher J. Niggle

12. Interest rate determination and endogenous money
John Smithin

PART III ENDOGENOUS MONEY IN POST-KEYNESIAN ANALYSIS
13. The analytical role of endogenous money and the horizontalist–structuralist debate
Peter Docherty

14. The horizontalist debate: lessons from New Zealand
Paul Dalziel

15. The rate of interest as a macroeconomic distribution parameter: horizontalism and post-Keynesian models of distribution and growth
Eckhard Hein

16. Assessing some structuralist claims through a coherent stock–flow framework
Marc Lavoie

17. Horizontalism and structuralism: a suggested re-interpretation
Louis-Philippe Rochon and Sergio Rossi

18. An essay on horizontalism, structuralism and historical time
Mark Setterfield

19. A revisitation of the debate between the horizontalist and structuralist analyses of endogenous money: single-period analysis versus continuation analysis
Giuseppe Fontana

Index