The endogeneity of money and the future of monetary policy
Encyclopedia of Monetary Policy, Financial Markets and Banking, Elsevier, 2025
- Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
- Basım Tarihi: 2025
- Doi Numarası: 10.1016/b978-0-44-313776-1.00218-x
- Yayınevi: Elsevier
- Anahtar Kelimeler: Credit money, Endogeneity, Exogeneity, Monetary policy, Money
- Ankara Üniversitesi Adresli: Evet
Özet
The endogeneity of money has been the main topic of a long-lasting historical debate in monetary economics, reflecting different theoretical and analytical frameworks of the schools of economic thought. Beginning with the Classical Political Economy, the exogeneity assumption has a long lineage which covers bullionist thought, the Currency School, Neoclassical economics and Neoclassical Synthesis, Monetarism and New Classical Macroeconomics. On the other hand, the endogeneity of money view incorporates Marxist economics, anti-bullionist side, the Banking School, Keynes (at least Keynes of the Treatise) and Post-Keynesian schools. The debate over the endogeneity of money also has significant implications regarding the design of monetary policy.