Monograph Chapter
In Banking, Monetary Policy and the Political Economy of Financial Regulation
Edited by Gerald A. Epstein, Tom Schlesinger and Matías Vernengo
- Published in print:
- 25 Jul 2014
Handbook Chapter
In Handbook of Alternative Theories of Economic Growth
Edited by Mark Setterfield
- Published in print:
- 31 Mar 2010
Thomas I. Palley
This chapter presents the post-Keynesian theory of endogenous money supply and shows how it is fundamentally different from conventional money-supply theory. The conventional approach relies on the money multiplier and bank lending is invisible. Post-Keynesian theory discards the money multiplier and focuses on bank lending, which drives money creation. The chapter emphasizes the structuralist version of post-Keynesian theory, which retains Keynes’s liquidity-preference theory of long-term interest rates and also recognizes that banks are subject to financial constraints which limit their lending activities. The chapter then shows how to derive the LM schedule in an endogenous-money economy, which is a necessary prelude to reconstructing the IS–LM model.
Monograph Chapter
In Advances in Endogenous Money Analysis
Edited by Louis-Philippe Rochon and Sergio Rossi
- Published in print:
- 27 Oct 2017
Reference Entry
In The Elgar Companion to Post Keynesian Economics
Edited by J. E. King
- Published in print:
- 29 Jul 2003
Keynesian Macroeconomics and the Theory of Economic Growth: Putting Aggregate Demand Back in the Picture
Challenging the Supply-side Vision of the Long Run
Thomas I. Palley
Monograph Chapter
In The Economics of Demand-Led Growth
Edited by Mark Setterfield
- Published in print:
- 26 Jun 2002
Pitfalls in the Theory of Growth: An Application to the Balance-of-Payments-Constrained Growth Model
Challenging the Supply-side Vision of the Long Run
Thomas I. Palley
Monograph Chapter
In The Economics of Demand-Led Growth
Edited by Mark Setterfield
- Published in print:
- 26 Jun 2002
Handbook Chapter
In A Handbook of Alternative Monetary Economics
Edited by Philip Arestis and Malcolm Sawyer
- Published in print:
- 26 Jan 2007