Re: etymology of endogeneous money

["Niggle, Christopher" <Christopher_Niggle@xxxxxxxxxxxx>]

 Paul: I know that the insight/argument that money is created "endogenously"
by the interaction of banks and their loan customers is an old one; I was
just wondering when it began to be referred to as the "endogeneous money
theory" and it seemed to appear first in work such as yours when post
Keynesians began criticizing monetarism and IS-LM Keynesian models, which
almost always assumed that the central bank could control the money stock if
it wished to.  That seemed to begin in the early 1970s.

Chris

-----Original Message-----
From: paul davidson
To: Niggle, Christopher
Cc: pkt@xxxxxxxxxxxxxxxx
Sent: 7/28/2003 11:55 AM
Subject: RE: etymology of endogeneous money

At 10:48 AM 7/28/03 , you wrote:
>Thanks, Paul...I am interested in when the term began to be commonly
used
>and understood in its current meaning...so by the late 1960s and early
1970s
>PK and perhaps other folks were using the term, right?


Correct -- but if you really go into this then you have to go into the
19th
century controversy between the basnking school and the currency
school.  The banking school believed in endogeneous money-- which they
called the real bills doctrine.  The currency school believed in
exogenous
money --similar to current day monetarism.  Some of this history of
econoic
thought is discussed in the first pages of Sidney Weintraub and my 1973
EJ
article "Money As Cause And Effect"

Paul
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