Munich Personal RePEc Archive

Post Keynesian Endogeneity of Money Supply: Panel Evidence

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)


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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.

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