The article discusses how money and monetary policy affect the economy in Germany. It compares two views on how money is created: endogeneity and exogeneity. The researchers use a model of the money-creating sector with endogenous money and compare it to the money multiplier approach. They analyze the development of the nominal money stock in Germany from 1975 to 1998 using a cointegrated vector autoregressive model. The findings show that neither the money multiplier approach nor the model with endogenous money fully explain the empirical evidence from the study.