Economics, Econometrics and Finance
8 years ago

Outdated Money Supply Theories Could Be Holding Back Economic Progress.

The theory of money supply : a neglected area of monetary economics
Maxwell G. W. Morley

Paper Summary

Related papers

Theme background image
Computer Science
a year ago

E-money in China weakens central bank control over money supply.

Blockchain IoT
Crowdfunding Dynamics
Two-Sided Markets
1 view
Theme background image
Social Sciences
2 years ago

Commodity money's role in capitalism shapes evolution of valueless forms.

Political Economy
Macroeconomic Trends
Economic Institutions
1 view
Economics, Econometrics and Finance
4 years ago

Banks can create money without needing savings, changing economic landscape.

Macroeconomic Trends
2 views

The article argues that current theories about money supply are based on a wrong understanding of money and the financial sector. By analyzing the history of money and different schools of thought in economics, it shows that the existing theories are flawed. The incorrect assumption of external control over money supply leads to neglect of an important aspect of monetary policy. The article suggests that economists need to develop a new theory of money supply based on a better understanding of money and the financial sector.