Transformational Growth within the Monetary Circuit

Yıl 2019, Cilt: 19 Sayı: 1, 47 - 54, 21.03.2019

Dicle Özdemir

https://doi.org/10.18037/ausbd.550243

Öz

Endogenous money view can be described as the supply of money is not under the absolute control of the central banks and emerges endogenously within financial markets, market structure and credit availability. Most importantly, the theory of endogenous money reveals enormous significance of the source of interest rates in the definition of financial fragility. The aim of this article is to present the post-Keynesian theme of the monetary circuit as argued by the General Theory of Transformational Growth. According to this approach, capital adequacy requirements are procyclical, and for this reason, it is important to analyze the relationship between the growth rate and the rate of interest, since the growth of bank capital is tied to the latter. 

Anahtar Kelimeler

Endogenous Money, Growth, Interest Rate, Liquidity

Kaynakça

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