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of Post Keynesian Economics regarding the relationship between endogenous money theory and the liquidity preference … theory of the rate of interest. We incorporate Asensio's assumptions as far as possible and use simulation experiments to …
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Standard models of aggregate demand treat money and credit asymmetrically; money is given a special status, while loans, bonds, and other debt instruments are lumped together in a "bond market" and suppressed by Walras' Law. This makes bank liabilities central to the monetary transmission...
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A method advocated by Wynne Godley to model monetary macroeconomics, is presented. The method, based on a transactions matrix, essentially makes sure that every flow goes somewhere and comes from somewhere, so that there are no black holes. The method is put to use for several purposes: to...
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The paper examines the endogenous money supply theory for a representative emerging market economy, namely Poland. The … Post-Keynesian theory is tested against the fractional reserve theory of money creation that assumes money supply to be …-Keynesian theory asserts. In short, loans make deposits, instead of the reverse. The M3 money multiplier does not Granger-cause broad …
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