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The endogeneity of credit money 1  

Author: Basil J. Moore a
Affiliation:   a Wesleyan University, Connecticut
DOI: 10.1080/09538258900000005
Publication Frequency: 4 issues per year
Published in: journal Review of Political Economy, Volume 1, Issue 1 March 1989 , pages 65 - 93
Formats available: PDF (English)
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Abstract

This article examines the important post-Keynesian theme of the endogeneity of the money supply. A series of Granger-Sims tests of causality are employed to ascertain the main determinants of credit money. The results support the view that the money supply is endogeneously determined and that changes in the wage bill are the main determinants of increases in the demand for bank credit.
1This presentation is a summary of the argument in Horizontalists and verticalists: the macro economics of credit money.Cambridge University Press: 1888.
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