Rethinking Endogenous Money: A Constructive Interpretation of the Debate between Horizontalists and Structuralists

19 Pages Posted: 9 Oct 2004

See all articles by Giuseppe Fontana

Giuseppe Fontana

Leeds University Business School (LUBS); Leeds University Business School (LUBS) - Division of Economics

Abstract

Beyond a widespread agreement on the idea that 'loans create deposits' and 'deposits make reserves', there is much controversy in the endogenous money literature over the workings of the reserve market, the credit market and the financial markets. In this paper a constructive interpretation of the debate between horizontalists and structuralists is suggested and their arguments are taken forward by showing that these controversial issues can be explained rigorously once a single-period-continuation framework is adopted.

Suggested Citation

Fontana, Giuseppe, Rethinking Endogenous Money: A Constructive Interpretation of the Debate between Horizontalists and Structuralists. Available at SSRN: https://ssrn.com/abstract=602011

Giuseppe Fontana (Contact Author)

Leeds University Business School (LUBS) ( email )

Leeds, LS2 9JT
United Kingdom

Leeds University Business School (LUBS) - Division of Economics ( email )

Leeds LS2 9JT
United Kingdom

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