Endogenous currency and banking passivity: a critical analysis of the “horizontalist” approach and the “monetary circuit theory"

Maria Cristina Penido de Freitas ()

Brazilian Journal of Political Economy, 1999, vol. 19, issue 4, 685-704

Abstract: The purpose of this article is to present a critical analysis of Post-Keynesian approachs that support the thesis of an extreme endogeneity of money creation. Neither horizontalists nor monetary circuit theorists give special attention to the dual and dialectic aspects of banks, profit oriented institutions which are responsible for money creation and for financial intermediation. Because of these aspects, banking competition is the core of financial instability and credit dynamics. Having as their main goal competition for profits, banks act procyclically helping to amplify the instability of the capitalist economy, and to stimulate financial speculation activities instead of industrial investments, which is the source of wealth and material reproduction in capitalist economies. JEL Classification: E44; E51; G21; E12.

Keywords: Post-Keynesianism; monetary economics; banks; monetary emission; bank competition (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... ticle/view/1077/1062 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:19:y:1999:i:4:p:685-704:id:1077

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().