Post Keynesian Controversies on Endogenous Money: An Alternative Interpretation

Piégay, Pierre

doi:10.4337/9781781008416.00022

Search citation statements

Order By: Relevance

Paper Sections

Select...

The Main Features Of a Monetary Economy Of Production1

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2015

2023

Publication Types

Select...

Article2

Relationship

Self Cite0

Independent2

Authors

Journals

Cited by 2 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The functioning of economies is therefore characterized by the flux and reflux of money, mainly from banks to firms and firms to banks. This principle is at the core of the monetary circuit theory (Graziani 1990(Graziani , 2003Piégay and Rochon 2003;Rochon 2009) and stock-flow consistent models (Godley and Lavoie 2007).…”

Section: The Main Features Of a Monetary Economy Of Productionmentioning

confidence: 99%

Refutations of Say’s Law and Dynamics of a Monetary Economy of Production

Cottin-Euziol¹

2023

Review of Radical Political Economics

View full text Add to dashboard Cite

In a monetary economy of production, Say’s law is invalid for several reasons. Based on some refutations, it is possible to state that revenues generated by the production process are structurally lower than the supply price of production, which means that firms create insufficient purchasing power to buy what they produce. Herein, we study the dynamics of such an economy and obtain two main results. First, the long-term debt level of that economy must increase during a growth phase to enable demand to grow at the same pace as supply. Second, because of the repayment of this debt, the gap between supply and net revenues generated by the production process widens along a growth phase. JEL Classification: E12, E2, E30, E42, G21

show abstract

Section: The Main Features Of a Monetary Economy Of Productionmentioning

confidence: 99%