Teaching money, fiscal and monetary policies: basic principles

Hassan Bougrine

International Journal of Pluralism and Economics Education, 2012, vol. 3, issue 3, 320-332

Abstract: This paper presents some challenges encountered by non-neoclassical economists in explaining that money is not a commodity, that it is not backed by gold, and that it is not scarce. We discuss the role of commercial banks in creating money by simply granting loans. We then explain that, in a similar manner, the central bank can easily pay for any government expenditure simply by accepting to credit the government's account. Once students understand the mechanism behind the creation of money, they are led to formulate the correct economic policies that are needed for the creation of wealth and prosperity.

Keywords: barter; commodity money; credit; debt; fiscal policy; interest rates; monetary policy; public finance; taxes; commercial banks; bank loans; economic education; economic policies; creation of money. (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=51141 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijplur:v:3:y:2012:i:3:p:320-332

Access Statistics for this article

More articles in International Journal of Pluralism and Economics Education from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().