endogenous money and inflation- again

["Kazuhiro Kurose" <kurose@xxxxxxxxxxxxxxxxxxxxxx>]

Hello Everyone

I have a question again, though I have asked you on the relation between endogenous money and inflation.
In the mainstream view, money is regarded only as a transaction and portfolio assets, and its quantity is fixed. So the
prices is derived from the following equation, if the liquidity function is known;

P=M/L(r, L).

Almost Post-Keynesian appear, however, to disagree with this.At first, Post-Keynesian never regard the quantity of money
as fixed. Second is that because money isn't regarded just as transaction and portfolio assets, almost Post-Keynesian
don't emphasize liquidity function so much. So the price level can't derived from this equation from the perspective of
Post-Keynesian.

Then Moore said as follows in the previous mail.

At 1:14 PM 12/6/00 , you wrote
> So it appears that the increase in the money supply is "causes" the
> increase in money income and prices. But in fact money is endogenous, and
> so cannot cause anything. In fact the growth of both money and prices are
> explained by the rate of growth of money wages.

Are there models that what Moore said is formulated mathematically? What is the equation to determine the price levels?
I would like to imagine the economic system which Moore described more concretely.

Best Wishes

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  Kazuhiro Kurose
  Graduate School of Economics and Business
  Administration, Hokkaido University
  Kita 9 Nishi 7, Kita-Ku, Sapporo, Japan
  060-0809
    TEL: +81-11-716-2111 ex:2786
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