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Chick V & Dow S (2002) Monetary policy with endogenous money and liquidity preference: a nondualistic treatment, Journal of Post Keynesian Economics, 24 (4), pp. 587-607.
This paper builds on a synthesis of endogenous money and liquidity preference theory to address the mechanisms by which monetary policy takes effect. We focus on the United Kingdom, under a range of institutional arrangements. Rather than operating solely by means of "the" exogenous interest rate, we consider the real process by which the central bank exerts its influence on the banking system, and how that is transmitted to the credit market and the money market. The focus is on process rather than equilbrium, and on the state of expectations, departing from the usual dualism between the interest rate and the money supply.
endogenous money; liquidity preference; monetary policy
|Authors||Chick Victoria, Dow Sheila|
|Publisher||ME Sharpe, Inc|
Journal of Post Keynesian Economics: Volume 24, Issue 4 (SUM 2002)