About the Book
Post-Keynesian Monetary Theory recaps Marc Lavoie's views on monetary theory over a 35-year period, seen from a post-Keynesian perspective. The book contains a collection of twenty previously published papers, as well as an introduction which explains how these papers came about and how they were received. All of the selected articles avoid mathematical formalism.
Readers will find analyses of the earlier advocates of endogenous money such as Nicholas Kaldor and Jacques Le Bourva. They will discover how the arguments in support of the post-Keynesian theory of endogenous money and the credit view of banking have evolved through this 35-year period, and how they have been related to the new procedures pursued by central banks. All these essays show the relevance of the realistic post-Keynesian monetary theory in understanding the subprime and euro crises, quantitative easing and the distributional role of interest rates.
Within these pages Marc Lavoie provides an overview of what has happened in post-Keynesian monetary economics over the last three and a half decades for students and scholars with interest in monetary economics, the horizontalist-structuralist debates and the recent history of economic thought.
Table of Contents:
Contents:
Foreword
Louis-Philippe Rochon
Introduction
Marc Lavoie
PART I EARLIER AND EASIER WRITINGS
1 ‘The Endogenous Flow of Credit and the Post Keynesian Theory of Money’,
Journal of Economic Issues , 18 (3), September 1984, 771–97 2
2 ‘The Post Keynesian Theory of Endogenous Money: A Reply’, Journal of
Economic Issues , 19 (3), September 1985, 843–8 29
3 ‘Credit and Money: The Dynamic Circuit, Overdraft Economics, and Post-
Keynesian Economics’, in M. Jarsulic (ed.), Money and Macro Policy , Kluwer-
Nijhoff, Boston, 1985, 63–84 35
4 ‘A Primer on Endogenous Credit-Money’, in L.-P. Rochon and S. Rossi (eds),
Modern Theories of Money: The Nature and Role of Money in Capitalist
Economies , Edward Elgar, Cheltenham, UK and Northampton, MA, USA, 2003,
506–43 57
PART II INSPIRING AUTHORS
5 ‘Change, Continuity, and Originality in Kaldor’s Monetary Theory’, in E.J. Nell
and W. Semmler (eds), Nicholas Kaldor and Mainstream Economics:
Confrontation or Convergence? , Macmillan, London, 1991, 259–78 96
6 ‘Jacques Le Bourva’s Theory of Endogenous Credit-Money’, Review of Political
Economy , 4 (4), 1992, 436–46 116
7 ‘Eichner’s Monetary Economics: Ahead of Its Time’, in M. Lavoie, L.-P. Rochon
and M. Seccareccia (eds), Money and Macrodynamics: Alfred Eichner and Post-
Keynesian Economics , M.E. Sharpe, Armonk (NJ), 2010, 155–71 127
PART III IN DEFENSE OF HORIZONTALISM
8 ‘Monetary Policy in an Economy with Endogenous Credit Money’, in
G. Deleplace and E.J. Nell (eds), Money in Motion: The Circulation and Post-
Keynesian Approaches , Macmillan, London, 1996, 532–45 145
9 ‘Horizontalism, Structuralism, Liquidity Preference and the Principle of
Increasing Risk’, Scottish Journal of Political Economy , 43 (3), August, 1996,
275–300 159
10 ‘The Credit-Led Supply of Deposits and the Demand for Money: Kaldor’s Reflux
Mechanism as Previously Endorsed by Joan Robinson’, Cambridge Journal of
Economics , 23 (1), January 1999, 103–13 185
11 ‘Endogenous Money: Accommodationist’, in P. Arestis and M. Sawyer (eds),
Handbook on Alternative Monetary Economics , Edward Elgar, Cheltenham, UK
and Northampton, MA, USA, 2006, 17–34 196
PART IV THREE INNOVATING ARTICLES
12 ‘Monetary Base Endogeneity and the New Procedures of the Asset-Based
Canadian and American Monetary Systems’, Journal of Post Keynesian
Economics , Summer 2005, 27 (4), 689–709 215
13 ‘Towards a Post-Keynesian Consensus in Macroeconomics: Reconciling the
Cambridge and Wall Street Views’, in E. Hein, T. Niechoj and E. Stockhammer
(eds), Macroeconomic Policies on Shaky Foundations – Whither Mainstream
Economics? , Metropolis-Verlag, Marburg, 2009, 75–99 236
14 ‘Fair Rates of Interest in Post-Keynesian Political Economy’, in J. Teixeira (ed.),
Issues in Modern Political Economy , University of Brasilia Press, Brasilia, 1997,
123–37 261
PART V AFTER THE GLOBAL FINANCIAL CRISIS
15 ‘Changes in Central Bank Procedures During the Subprime Crisis and Their
Repercussions on Monetary Theory’, International Journal of Political Economy ,
39 (3), Fall 2010, 3–23 277
16 ‘The Monetary and Fiscal Nexus of Neo-Chartalism: A Friendly Critique’,
Journal of Economic Issues , 47 (1), March 2013, 1–31 298
17 ‘The Eurozone: Similarities to and Differences from Keynes’s Plan’,
International Journal of Political Economy , 44 (1), Spring 2015, 3–17 329
18 ‘Rethinking Monetary Theory in Light of Keynes and the Crisis’, Brazilian
Keynesian Review , 2 (2), 2016, 174–88 344
19 ‘Unconventional Monetary Policies, with a Focus on Quantitative Easing’,
European Journal of Economics and Economic Policies: Intervention , Edward
Elgar, Cheltenham, UK and Northampton, MA, USA, 15 (2), 2018, 139–46 (with
Brett Fiebiger) 359
PART VI A FINAL OVERVIEW
20 ‘Money, Credit and Central Banks in Post-Keynesian Economics’, in E. Hein and
E. Stockhammer (eds), A Modern Guide to Keynesian Macroeconomics and
Economic Policies , Edward Elgar, Cheltenham, UK and Northampton, MA,
USA, 2011, 34–60 368
Index
About the Author :
Marc Lavoie, Professor Emeritus, University of Ottawa, Canada, Professor Emeritus, University of Sorbonne Paris Nord (CEPN), France and FMM Fellow, Institut für Makroökonomie, Düsseldorf, Germany
Review :
'This collection of early essays on endogenous money by Marc Lavoie (and some later ones) is of the utmost importance. Marc s commentary on the essay about Jacques Le Bourva is pivotal - '...a theory [of] the endogeneity of money is insufficient...one also has to reject the existence of a natural rate of interest ...''
--John Smithin, York University, Toronto and Aurora Philosophy Institute, Canada'Marc Lavoie has been a leading post-Keynesian economist for a long time. This book presents a collection of important papers, published over four decades, in one of his areas of specialization, monetary theory. It contains path-breaking contributions to the theory of endogenous money and credit and to monetary policy analysis.'
--Eckhard Hein, Berlin School of Economics and Law, Germany
'This is a great collection of papers, written over four decades, displaying the many contributions which Marc Lavoie has made to the development of Post-Keynesian monetary theory. A highly recommended read of Marc's in-depth analyses of endogenous money and credit and contributions to policy debates.'
--Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UK
