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Endogenous Money: A Note on Some Post-Keynesian Controversies

Keynes's theory of liquidity preference sought to illuminate the essential properties of money under the conditions of uncertainty that often lead to involuntary unemployment. Subsequent Post-Keynesian literature built upon this concept to show that a deregulated financial system could induce p...

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Bibliographic Details
Published in:Review of political economy 2013-04, Vol.25 (2), p.348-359
Main Author: Lucarelli, Bill
Format: Article
Language:English
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Summary:Keynes's theory of liquidity preference sought to illuminate the essential properties of money under the conditions of uncertainty that often lead to involuntary unemployment. Subsequent Post-Keynesian literature built upon this concept to show that a deregulated financial system could induce phases of endemic financial instability and crises. Keynes's finance motive provides an important starting point in Post-Keynesian theories of endogenous money. This article examines the controversies between two major contending analytical approaches, the Horizontalist and Structuralist schools.
ISSN:0953-8259
1465-3982
DOI:10.1080/09538259.2013.775830