Monetary theory texts teach that governments create money and control monetary policy. Researchers at the Bank of … England, IMF and many others show that fractional reserve banking allows the private sector to create money. Most money … based debt is intimately connected to the process of money creation in the modern financial system. It should be obvious …

This paper advances three fundamental propositions regarding money: (1) As R. W. Clower (1965) famously put it, money … buys goods and goods buy money, but goods do not buy goods. (2) Money is always debt; it cannot be a commodity from the … possible. These three propositions are used to build a theory of money that is linked to common themes in the heterodox …

A wide range of heterodox theories claim that banks are special because they create money in the act of lending. Put …

body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New … inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model …

We establish a benchmark result for the relationship between the loanablefunds and the money-creation approach to …

This paper studies the efficiency of electronic money system by focusing on the decentralized setting of issuance. In … the model competitive money issuers can create small denominated money (or e-money) backed by large denominated government … moral hazard incentive requires the more government bonds for the issuers to provide the same amount of money. In general …

equilibrium price level and allocations. Our model features trade in fiat money, real assets and a monetary authority which … injects money into the economy through short-term and long-term loans to agents. Short-term loans are riskless, but long … individuals is zero, i.e., there is no outside money. When there is no default in equilibrium, there is indeterminacy. Positive …