This paper examines the macroeconomic implications of recent developments in financial engineering, with particular emphasis on the post-1987 growth of markets for securities backed by credit card, installment, student loan, and home equity receivables. Three linkages of financial engineering to...

A theoretical synthesis of endogenous money and liquidity preference is not possible so long as the latter is recognized as a theory of the demand and supply of money. A key step toward the reconcilement of the two theories is a revival of the original version of Keynes's theory, which appeared...