The idea of an exogenous money supply —controlled entirely through central bank interventions— was a fundamental tenet of monetarism and New Classical economics. Post Keynesians have developed an extensive literature arguing that the money supply is in fact endogenous —that market forces...

The idea of an exogenous money supply —controlled entirely through central bank interventions— was a fundamental tenet of monetarism and New Classical economics. Post Keynesians have developed an extensive literature arguing that the money supply is in fact endogenous —that market forces...