Nayan, Sabri and Ahmad, Mahyudin and Kadir, Norsiah and Abdullah, Mat Saad (2013): Post Keynesian Endogeneity of Money Supply: Panel Evidence. Forthcoming in: Procedia Economics and Finance (October 2013)
Preview |
PDF
MPRA_paper_48716.pdf Download (185kB) | Preview |
Abstract
Post Keynesian economics is actually macroeconomics in a world of uncertainty and endogenous money. Post Keynesians posit that money supply in a market oriented production economy is endogenous or endogenously determined (rather than exogenous as claimed by Monetarists). Money supply is said to be endogenous if it is determined within the economic system itself. The present paper investigates this theory using a panel dataset of 177 countries from year 1970-2011 utilising dynamic panel data analysis and has found that money supply is endogenous as proposed by Post Keynesian theorists.
Item Type: | MPRA Paper |
---|---|
Original Title: | Post Keynesian Endogeneity of Money Supply: Panel Evidence |
Language: | English |
Keywords: | Post-Keynesians; Endogeneity; Panel Data Analysis; System GMM. |
Subjects: | E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E12 - Keynes ; Keynesian ; Post-Keynesian E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers |
Item ID: | 48716 |
Depositing User: | Mahyudin Ahmad |
Date Deposited: | 30 Jul 2013 10:25 |
Last Modified: | 27 Sep 2019 01:07 |
References: | Ahmad & Ahmed (2006). The Long-run and Short-run Endogeneity of Money Supply in Pakistan: An Empirical Investigation. Research Bulletin, 2(1), State Bank of Pakistan. Alonso-Borrego, C., Arellano, M., (1999). Symmetrically normalized instrumental variable estimation using panel data. Journal of Business and economic statistics 17 (1), 36-49. Arellano, M., Bond, S., (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58, 277-297. Arellano, M., Bover, O., (1995). Another look at the instrumental variables estimation of error-components models. Journal of Econometrics 68, 29-51. Blundell, R., Bond, S., (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 87, 115-143. Bond, S., Hoeffler, A., Temple, J., (2001). GMM Estimation of Empirical Growth Models. Economic Papers, W21. Nuffield College, University of Oxford. Bourva, J. L. (1992). Money creation and credit multipliers. Review of Political Economy, 4(4), 447-466. Cifter, A., & Ozun A. (2007). The Monetary Transmission Mechanism in the New Economy: Evidence from Turkey (1997-2006). South East European Journal of Economics and Business, 2, 15-24. Davidson, P. (1978). Why Money Matters: Lessons from a Half Century of Monetary Theory. Journal of Post Keynesian Economics, 1, 46-70. Davidson, P. (1993). Reforming the world's money. Journal of Post Keynesian Economics, 15(2), 153-179. Kaldor, N. (1982). The Scourge of Monetarism. London: Oxford University Press. Keynes, J.M. (1930). A Treatise On Money, Volume I & II , New York: Harcourt, Brace and Company. Keynes, J.M. (1933). Essays in Biography, Vol. X, London: Macmillan. Keynes, J. M. (1936). The General Theory of Employment, Interest and Money London: Prometheus Books. King, M. (1994). The Transmission Mechanism of Monetary Policy. Bank of England Quarterly Bulletin. August. Lavoie, M. (1992). Jacques Le Bourva's theory of endogenous credit-money. Review of Political Economy, 4(4), 436-446. Lavoie, M. (1996). Monetary Policy in an Economy with Endogenous Credit Money. In E.Nell and G. Deleplace (eds.), Money in Motion. London: Macmillan. Lavoie, M. (2005). Monetary base endogeneity and the new procedures of the asset-based Canadian and American monetary systems. Journal of Post Keynesian Economics, 27(4), 689-708. Moore, B. J. (1983). Unpacking the Post Keynesian black box: bank lending and the money supply. Journal of Post Keynesian Economics, 5(4), 537-556. Moore, B. J. (1986). How Credit Drives the Money Supply: The Significance of Institutional Developments. Journal of Economic Issues, 20(2), 443-452. Moore, B. J. (1988). The endogenous money supply. Journal of Post Keynesian Economics, 10(3), 372-385. Palley, T.I. (1992). Money, Credit and Prices in a Kaldorian Macro Model. Journal of Post Keynesian Economics, 14(2), 183-205. Panagopoulos, Y., & Spiliotis, A. (1998). The determinants of commercial banks' lending behavior: some evidence for Greece. Journal of Post Keynesian Economics, 20(4), 649-672. Pollin, R. (1991). Two theories of money supply endogeneity: some empirical evidence. Journal of Post Keynesian Economics, 13(3), 366-396. Robinson, J. (1956). The Accumulation of Capital. London: Macmillan. Rochon, L.-P. (2001). Cambridge's Contribution to Endogenous Money: Robinson and Kahn on credit and money. Review of Political Economy, 13(3), 287-307. Shapiro, N. (2005). Competition and aggregate demand. Journal of Post Keynesian Economics, 27(3), 541-549. Smithin, J. (1994). Controversies in Monetary Economics: Ideas, Issues and Policy. Aldershot, Uk: Edward Elgar. Vera, A. P. (2001). The endogenous money hypothesis:some evidence from Spain (1987-1998). Journal of Post Keynesian Economics, 23(3), 509-526. Vymyatnina, Yulia. (2006). How much control does Bank of Russia have over money supply? Research in International Business and Finance, 20, 131-144. Wray, L. R. (1992). Alternative Approaches to Money and Interest Rates. Journal of Economic Issues, 26(4), 1145-1178. Wray, L. R. (1995). Keynesian Monetary Theory: Liquidity Preference or Black Box Horizontalism. Journal of Economic Issues, 29(1), 273-282. World Bank (2012). World Bank’s World Development Indicators. Dataset retrieved from World Development Indicator website: http://data.worldbank.org/data-catalog/world-development-indicators |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/48716 |