Post-Keynesians disagree about whether money is intrinsically endogenous, or whether it has become endogenous over time with the emergence of modern central banking. In this chapter, monetary history and institutional analysis are brought to bear on the issue. The chapter examines two early monetary systems that lacked central banks: metallic money in fifteenth- to seventeenth-century western Europe, and paper money in eighteenth-century Britain and British North America. These systems are found to have been imperfectly endogenous, owing to inadequacies in their mechanics of supply. Furthermore, endogeneity did not evolve in an unremittingly forward path historically, as the literature suggests: in some respects, metallic-money systems were more flexible than paper-money systems.
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Louis-Philippe Rochon and Sergio Rossi
What precisely is endogenous money? Does the central bank always accommodate banks’ demand for central-bank money? Does it have the ability to increase the money supply exogenously? Can it really have the rate of interest of its choice? Has money always been endogenous or has it become endogenous through time with the advent of certain institutions? This volume shows that a proper understanding of money is still required, and that the institutional actions of central banks reveal how recent so-called unconventional policies are doomed to fail. Revisiting the fundamental elements of the theory of endogenous money leads to completely different sets of monetary policy recommendations.
Edited by Louis-Philippe Rochon and Sergio Rossi
The Economics of an Emergent System Property
This chapter highlights the limits of current approaches to the economics of innovation. It also stresses their role in articulating a theory of innovation as an endogenous process that relies upon the characteristics of the system in which the response of firms to unexpected mismatches in both labour and factor markets takes place. The role of Marshallian contributions to Schumpeterian thinking is stressed.
Achieving Fiscal Sustainability
Edited by Naoyuki Yoshino and Peter J. Morgan
Sherrill Shaffer and Laura Spierdijk
Decades of theoretical and empirical research have contributed numerous ways to measure competition and to compare the competitive impact of alternate regulatory policies and market environments. Several of the most convenient measures, unfortunately, are beset by very serious problems, while none are completely ideal. Faced with an ongoing and undiminished need to assess competition and market power nonetheless, we would advocate a focus on the scant handful of “least objectionable” measures. Among these, the Lerner index and the Rothschild–Bresnahan conduct index together provide complementary, well-established, easily understood measures that relate to policy-relevant aspects of market power according to formal underlying theoretical models of firms and industries. The latter approach is slightly more demanding with regard to data and estimation techniques, requiring nonlinear systems estimation except in a correlation version under additional assumptions; one tradeoff is that the correlation version yields only qualitative (rather than quantitative) conclusions about market power.
Jana Schmutzler, Marcela Suarez, Alexandra Tsvetkova and Alessandra Faggian
This introductory chapter synthesizes the arguments presented by the book contributors and argues that a broad definition of innovation systems is appropriate in the context of developing and transition countries. By weaving in specific examples from the chapters, the introduction demonstrates the importance of a context-specific approach that takes into account sociocultural context, macroeconomic structures and institutions. Taken as a whole, the book shows how the system level of National Innovation Systems (NIS) influences the way firms and other actors build up competences and learn, while the outcomes of interactions among these actors at the micro level shape the NIS environment.