New study challenges traditional views on money supply and balance of payments.
The article discusses different views on where money comes from and how it affects the economy. It focuses on how money supply can change within an economy, especially in relation to international trade. The researchers use a Post Keynesian approach to show that money supply is not controlled by the central bank alone, but is influenced by how businesses and individuals make financial decisions. They argue that in certain financial systems, money supply can change on its own without external control. This challenges traditional ideas about how money works in the economy.