Endogenous Money Theory Redefines Economic Systems and Production Processes
The endogenous money theory is a key part of post-Keynesian monetary theory. This paper aims to see if this theory helps explain why money isn't neutral, as Keynes suggested. Keynes said money changes how economies work compared to barter systems. The endogenous money theory needs to show how money affects economies differently. In Keynes' General Theory, money's role as a store of wealth and liquidity preference theory explain income changes. This paper checks if the endogenous money theory can replace or work with liquidity preference theory.