Economics, Econometrics and Finance
5 years ago

Bank loans drive deposits, shaping Eurozone money creation process.

1 view
Review of Political Economy
Money Creation in the Eurozone: An Empirical Assessment of the Endogenous and the Exogenous Money Theories
Matteo Deleidi, Giuseppe Fontana

Paper Summary

The article examines how money is created in the Eurozone from 1999 to 2016. It compares two main theories about money creation and finds that bank loans lead to bank deposits, which then affect monetary reserves.

Related papers

Economics, Econometrics and Finance
2 years ago

Endogenous money theory triumphs over exogenous theory in monetary policies.

Macroeconomic Trends
International Finance
Macroeconomic Analysis
2 views
Economics, Econometrics and Finance
4 years ago

Money supply rule ineffective: Changes in prices not linked to supply.

Macroeconomic Trends
Monetary Models
2 views
Economics, Econometrics and Finance
5 years ago

Bank loans drive deposits, shaping Eurozone money creation process.

Macroeconomic Trends
Macroeconomic Analysis
Monetary Models
2 views