Abstract
Following the seminal writings of Sidney Weintraub, Post Keynesian economists have traditionally focused on the role played by wages and, more precisely, unit labor costs in both explaining inflationary pressures and in providing insights on the credit-driven nature of the money-supply process. Holding the view that money-supply growth is inextricably linked to the movement in money wages and employment, modern Post Keynesian writers, such as Basil Moore (1988, chapter 9), have made this Weintraubian view the cornerstone of their theory of endogenous money. Indeed, Paul Davidson (1988: 166–7) has gone as far as to suggest that this Post Keynesian theory of money can be interpreted as the modern counterpart of the ‘real bills’ doctrine widely espoused by the nineteenth-century endogenous-money theorists of the banking school.
The author would like to thank M. Lavoie, A. Parguez, J. M. Smithin and I.M. Spry for their very useful comments. The usual disclaimer applies.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Bleaney, M. (1976), Underconsumption Theories: A History and Critical Analysis ( New York: International Publishers).
Cencini, A. (1984), Time and the Macroeconomic Analysis of Income ( London: Frances Pinter).
Cencini, A. (1988), Money, Income and Time ( London: Frances Pinter).
Cornwall, J. (ed.) 1984 ), After Stagflation: Alternatives to Economic Decline ( Armonk, NY: M.E. Sharpe )
Davidson, P. (1986), ‘Finance, Funding, Saving and Investment’, Journal of Post Keynesian Economics, 9 (1), 101–10.
Davidson, P. (1988), ‘Endogenous Money, the Production Process and Inflation Analysis’, Economie appliquée, 41 (1), 151–69.
De Vroey, M. (1988), ‘II circuito della moneta: due interpretazioni’, in A. Graziani and M. Messori (eds), Moneta e Produzione ( Turin: Giulio Einaudi ), 215–45.
Dupont, F. and E. Reus (1989), ‘Le profit macroéconomique monétaire’, Economie Appliquée, 42 (2) 87–114.
Fagg Foster, J. (1981), ‘Understandings and Misunderstandings of Keynesian Economics’, Journal of Economic Issues, 15 (4) 949–57.
Graziani, A. (1987), ‘Keynes’ Finance Motive’, Economies et Sociétés, 21 (9), 23–42.
Graziani, A. (1988), ‘II circuito menetario’, in A. Graziani and M. Messori (eds.), Moneta e Produzione ( Turin: Giulio Einaudi), xi-xiii.
Graziani, A. (1990), ‘The Theory of the Monetary Circuit’, Economies et Sociétés, 24 (6), 7–36.
Hicks, J. (1974), ‘Capital Controversies: Ancient and Modern’, American Economic Review, Papers and Proceedings, 64 (2), 307–16.
Hood, W.C. (1959), Financing of Economic Activity in Canada ( Ottawa: Queen’s Printer).
Lavoie, M. (1985), ‘Credit and Money: The Dynamic Circuit, Overdraft Economies and Post Keynesian Economics’, in M. Jarsulic (ed.), Money and Macro Policy ( Boston: Kluwer-Nijhoff ), 63–84.
Lavoie, M. (1987), ‘Monnaie et production: une synthèse de la théorie du circuit’, Economies et Sociétés, 21 (9) 65–101.
Léonard, J. (1987), ‘Le paradoxe de l’intérêt et la crise de l’économie monétaire de production’, Economies et Sociétés, 21 (9), 149–68.
Lowe, A. (1976), The Path of Economic Growth ( Cambridge: Cambridge University Press).
Messori, M. (1985), ‘Le circuit de la monnaie: acquis et problémes non résolus’, in R. Arena and A. Graziani (eds.) Production, circulation et monnaie ( Paris: Presses Universitaries de France ), 207–46.
Minsky, H.P. (1982), Can ‘It’ Happen Again?, Essays on Instability and Finance ( Armonk, NY: M.E. Sharpe).
Moore, B.J. (1985), ‘Wages, Bank Lending and the Endogeneity of Credit Money’, in M. Jarsulic (ed.), Money and Macro Policy ( Boston: Kluwer-Nijhoff ), 1–28.
Moore, B.J. (1988) Horizontalists and Verticalists: The Macroeconomics of Credit Money ( Cambridge: Cambridge University Press).
Nell, E.J. (1967), ‘Wicksell’s Theory of Circulation’, Journal of Political Economy, 75 (4) (Part I ), 386–94.
Nell, E.J. (1986), ‘On Monetary Circulation and the Rate of Exploitation’, Thames Papers in Political Economy (Summer), 1–36.
Nell, E.J. (1990), ‘The Quantity Theory and the Mark-Up Equation’, Economie Appliquée, 43 (2), 33–42.
Neufeld, E.P. (1972), The Financial System of Canada, Its Growth and Development, ( Toronto: Macmillan of Canada).
Parguez, A. (1980), ‘Profit, épargne, investissement: éléments pour une théorie monétaire du profit’, Economie Appliquée, 33 (2), 425–55.
Parguez, A. (1981), ‘Keynes et la révolution’, Cahier d’économie politique, (6), 171–87.
Parguez, A. (1986), ‘Au coeur du circuit ou quelques réponses aux énigmes du circuit’, Economies et Sociétés, 20 (8/9), 24–40.
Parker Foster, G. (1987), ‘Financing Investment’, Journal of Economic Issues, 21 (1), 101–12.
Robinson, J. (1956), The Accumulation of Capital ( London: Macmillan).
Rousseas, S. (1986), Post Keynesian Monetary Economics ( Armonk, NY: M.E. Sharpe).
Schmitt, B. (1966), Monnaie, salaires et profit ( Paris: Presses Universitaires de France).
Schumpeter, J.A. (1934), The Theory of Economic Development ( Oxford: Oxford University Press).
Seccareccia, M. (1984), ‘The Fundamental Macroeconomic Link between Investment Activity, the Structure of Employment and Price Changes: A Theoretical and Empirical Analysis’, Economies et Sociétés, 18 (4), 165–219.
Seccareccia, M. (1988), ‘Systemic Viability and Credit Crunches: An Examination of Recent Canadian Cyclical Fluctuations’, Journal of Economic Issues, 22 (1), 49–77.
Tobin, J. (1963), ‘Commercial Banks as Creators of “Money”’, in D. Carson (ed.), Banking and Monetary Studies (Homewood, III: Richard D. Irwin ), 408–19.
Tooke, T. (1844), An Inquiry into the Currency Principle, 2nd edn (London: Longman, Brown, Green and Longmans).
Tooke, T. (1848), A History of Prices, and the State of the Circulation, vol. IV ( London: Longman, Brown, Green, Longmans and Roberts ).
Weintraub, S. (1978), Capitalism’s Inflation and Unemployment Crisis ( Reading, Mass.: Addison-Wesley).
Weldon, J. (1991), On the Political Economy of Social Democracy: Selected Papers of J.C. Weldon ( Montreal: McGill-Queen’s University Press).
Wray, L. (1990), Money and Credit in Capitalist Economies: The Endogenous Money Approach ( Aldershot: Edward Elgar).
Editor information
Editors and Affiliations
Copyright information
© 1996 Ghislain Deleplace and Edward J. Nell
About this chapter
Cite this chapter
Seccareccia, M. (1996). Post Keynesian Fundism and Monetary Circulation. In: Deleplace, G., Nell, E.J. (eds) Money in Motion. The Jerome Levy Economics Institute Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24525-3_15
Download citation
DOI: https://doi.org/10.1007/978-1-349-24525-3_15
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-24527-7
Online ISBN: 978-1-349-24525-3
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)