Post-Keynesian Monetary Theory

Marc Lavoie, Professor Emeritus, University of Ottawa, Canada, Professor Emeritus, University of Sorbonne Paris Nord (CEPN), France and FMM Fellow, Institut für Makroökonomie, Düsseldorf, Germany

'This collection of early essays on endogenous money by Marc Lavoie (and some later ones) is of the utmost importance. Marc s commentary on the essay about Jacques Le Bourva is pivotal - '...a theory [of] the endogeneity of money is insufficient...one also has to reject the existence of a natural rate of interest ...''--John Smithin, York University, Toronto and Aurora Philosophy Institute, Canada'Marc Lavoie has been a leading post-Keynesian economist for a long time. This book presents a collection of important papers, published over four decades, in one of his areas of specialization, monetary theory. It contains path-breaking contributions to the theory of endogenous money and credit and to monetary policy analysis.'--Eckhard Hein, Berlin School of Economics and Law, Germany'This is a great collection of papers, written over four decades, displaying the many contributions which Marc Lavoie has made to the development of Post-Keynesian monetary theory. A highly recommended read of Marc's in-depth analyses of endogenous money and credit and contributions to policy debates.'--Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UK

• Contents:ForewordLouis-Philippe RochonIntroductionMarc LavoiePART I EARLIER AND EASIER WRITINGS1 ‘The Endogenous Flow of Credit and the Post Keynesian Theory of Money’,Journal of Economic Issues , 18 (3), September 1984, 771–97 22 ‘The Post Keynesian Theory of Endogenous Money: A Reply’, Journal ofEconomic Issues , 19 (3), September 1985, 843–8 293 ‘Credit and Money: The Dynamic Circuit, Overdraft Economics, and Post-Keynesian Economics’, in M. Jarsulic (ed.), Money and Macro Policy , Kluwer-Nijhoff, Boston, 1985, 63–84 354 ‘A Primer on Endogenous Credit-Money’, in L.-P. Rochon and S. Rossi (eds),Modern Theories of Money: The Nature and Role of Money in CapitalistEconomies , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 2003,506–43 57PART II INSPIRING AUTHORS5 ‘Change, Continuity, and Originality in Kaldor’s Monetary Theory’, in E.J. Nelland W. Semmler (eds), Nicholas Kaldor and Mainstream Economics:Confrontation or Convergence? , Macmillan, London, 1991, 259–78 966 ‘Jacques Le Bourva’s Theory of Endogenous Credit-Money’, Review of PoliticalEconomy , 4 (4), 1992, 436–46 1167 ‘Eichner’s Monetary Economics: Ahead of Its Time’, in M. Lavoie, L.-P. Rochonand M. Seccareccia (eds), Money and Macrodynamics: Alfred Eichner and Post-Keynesian Economics , M.E. Sharpe, Armonk (NJ), 2010, 155–71 127PART III IN DEFENSE OF HORIZONTALISM8 ‘Monetary Policy in an Economy with Endogenous Credit Money’, inG. Deleplace and E.J. Nell (eds), Money in Motion: The Circulation and Post-Keynesian Approaches , Macmillan, London, 1996, 532–45 1459 ‘Horizontalism, Structuralism, Liquidity Preference and the Principle ofIncreasing Risk’, Scottish Journal of Political Economy , 43 (3), August, 1996,275–300 15910 ‘The Credit-Led Supply of Deposits and the Demand for Money: Kaldor’s RefluxMechanism as Previously Endorsed by Joan Robinson’, Cambridge Journal ofEconomics , 23 (1), January 1999, 103–13 18511 ‘Endogenous Money: Accommodationist’, in P. Arestis and M. Sawyer (eds),Handbook on Alternative Monetary Economics , Edward Elgar, Cheltenham, UKand Northampton, MA, USA, 2006, 17–34 196PART IV THREE INNOVATING ARTICLES12 ‘Monetary Base Endogeneity and the New Procedures of the Asset-BasedCanadian and American Monetary Systems’, Journal of Post KeynesianEconomics , Summer 2005, 27 (4), 689–709 21513 ‘Towards a Post-Keynesian Consensus in Macroeconomics: Reconciling theCambridge and Wall Street Views’, in E. Hein, T. Niechoj and E. Stockhammer(eds), Macroeconomic Policies on Shaky Foundations – Whither MainstreamEconomics? , Metropolis-Verlag, Marburg, 2009, 75–99 23614 ‘Fair Rates of Interest in Post-Keynesian Political Economy’, in J. Teixeira (ed.),Issues in Modern Political Economy , University of Brasilia Press, Brasilia, 1997,123–37 261PART V AFTER THE GLOBAL FINANCIAL CRISIS15 ‘Changes in Central Bank Procedures During the Subprime Crisis and TheirRepercussions on Monetary Theory’, International Journal of Political Economy ,39 (3), Fall 2010, 3–23 27716 ‘The Monetary and Fiscal Nexus of Neo-Chartalism: A Friendly Critique’,Journal of Economic Issues , 47 (1), March 2013, 1–31 29817 ‘The Eurozone: Similarities to and Differences from Keynes’s Plan’,International Journal of Political Economy , 44 (1), Spring 2015, 3–17 32918 ‘Rethinking Monetary Theory in Light of Keynes and the Crisis’, BrazilianKeynesian Review , 2 (2), 2016, 174–88 34419 ‘Unconventional Monetary Policies, with a Focus on Quantitative Easing’,European Journal of Economics and Economic Policies: Intervention , EdwardElgar, Cheltenham, UK and Northampton, MA, USA, 15 (2), 2018, 139–46 (withBrett Fiebiger) 359PART VI A FINAL OVERVIEW20 ‘Money, Credit and Central Banks in Post-Keynesian Economics’, in E. Hein andE. Stockhammer (eds), A Modern Guide to Keynesian Macroeconomics andEconomic Policies , Edward Elgar, Cheltenham, UK and Northampton, MA,USA, 2011, 34–60 368Index