(Im)propriedades da moeda
By: COSTA, Fernando Nogueira da
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Material type: 
ArticlePublisher: São Paulo : Nobel, abr./jun. 1993Revista de Economia Política = Brazilian Journal of Political Economy 13, 2, p. 61-75Abstract: Keynes assumed inelasticity of supply (or inelasticity of production) with respect to demand as a necessary attribute of money. But the post-keynesian theory of money suggests that the money supply function should be viewed as horizontal, at a level of interest rates established by the central bank in setting the supply price of reserves. Interest rates rather than the money supply are the central banks true exogenous control variable. The money supply is endogenous, credit-driven and demand-determined. This paper examines why the later theory surpass Keyness theory of money
Keynes assumed inelasticity of supply (or inelasticity of production) with respect to demand as a necessary attribute of money. But the post-keynesian theory of money suggests that the money supply function should be viewed as horizontal, at a level of interest rates established by the central bank in setting the supply price of reserves. Interest rates rather than the money supply are the central banks true exogenous control variable. The money supply is endogenous, credit-driven and demand-determined. This paper examines why the later theory surpass Keyness theory of money
Revista de Economia Politica 1993
v. 13, n. 2(50)
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