Skip Navigation


Cambridge Journal of Economics Advance Access originally published online on August 28, 2006
Cambridge Journal of Economics 2006 30(6):847-860; doi:10.1093/cje/bel023
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
30/6/847    most recent
bel023v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (4)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Arestis, P.
Right arrow Articles by Sawyer, M.
Right arrow Search for Related Content
Related Collections
Right arrow E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System
Right arrow E50 - General
Right arrow E52 - Monetary Policy (Targets, Instruments, and Effects)
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author 2006. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Article

The nature and role of monetary policy when money is endogenous

Philip Arestis and Malcolm Sawyer*

* University of Cambridge, Levy Economics Institute, and University of Leeds

Address for correspondence: Philip Arestis, CCEPP, Dept. of Land Economy, University of Cambridge, 19 Silver Street, Cambridge CB3 9EP; email: pa267{at}cam.ac.uk

Abstract

This paper considers the nature and role of monetary policy when money is modelled as credit money endogenously created within the private sector. There are currently two schools of thought that view money as endogenous: one has been labelled the ‘new consensus’ in macroeconomics, and the other is the Keynesian endogenous (bank) money approach. The paper first explores the analysis of monetary policy in the ‘new consensus’ macroeconomic model, followed by an examination of the effectiveness of monetary policy in that analysis. The Keynesian view of endogenous money is discussed, and the role for monetary policy in a Keynesian endogenous monetary policy analysis is considered, including discussion of the objectives and instruments of monetary policy.

Key Words: Interest rate policy • ‘New consensus’ • Endogenous money • Role of monetary policy

JEL classifications: E5, E52

Manuscript received February 3, 2003; final version received June 30, 2004.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 Cambridge J EconHome page
M. Sawyer
Fiscal policy under New Labour
Camb. J. Econ., November 1, 2007; 31(6): 885 - 899.
[Abstract] [Full Text] [PDF]


Disclaimer: Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.