Banks as Accelerators of the Circulation of Money

Laurent Le Maux

Eastern Economic Journal, 2015, vol. 41, issue 4, 537-546

Abstract: The money multiplier approach asserts that banks are unique in that they implement a creation of money, while the finance approach regards banking institutions as financial intermediaries among others. In retrospect, Cantillon’s Essai stands between these two extreme approaches. It both challenges the money multiplier approach and grants to banks a significant monetary role. The aim of the paper is to clarify Cantillon’s theoretical propositions on bank issuing of debts convertible on demand into money at face value and to explore further the proposition according to which banks contribute to accelerating the circulation of money.

Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/eej/journal/v41/n4/pdf/eej201475a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/eej/journal/v41/n4/full/eej201475a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Banks as accelerators of the circulation of money (2015)
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:pal:easeco:v:41:y:2015:i:4:p:537-546

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().