On the interdependence of money supply and demand

Cavalieri, Duccio (2013): On the interdependence of money supply and demand.

Abstract

This is a short essay on the present state of a controversial problem: that of the relationship between the supply and the demand for money. Exogeneous or endogenous money supply? The different positions taken in the literature on the subject are examined and discussed. The author's confidence in their interdependence is then expressed and motivated.

• Item Type: MPRA Paper
• Language: English
• Keywords: Money, horizontalism, verticalism, structuralism
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E41 - Demand for Money; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies

References

Arestis, Philip and Sawyer, Malcolm, eds. (2006), A Handbook of Alternative Monetary Economics, Cheltenham and Northampton, Edward Elgar.

Cavalieri, Duccio (2004), “On some equilibrium and disequilibrium theories of endogenous money: a structuralist view”, History of Economic Ideas, 12 (3), 49–81.

Moore, Basil J. (1988), Horizontalists and Verticalists: The Macroeconomics of Credit Money, Cambridge: Cambridge University Press.

Palley, Thomas (1996), "Accommodationism versus Structuralism: Time for an Accommodation", Journal of Post Keynesian Economics, 18 , 585-94.

Rochon, Louis-Philippe and Rossi, Sergio (eds.) (2003), Modern Theories of Money: the Nature and Role of Money in Capitalist Economies, Cheltenham and Northampton: Edward Elgar.