Post-Keynesian money endogeneity evidence in G-7 economies

Badarudin, Zatul E.; Ariff, Mohamed; Khalid, Ahmed M.

doi:10.1016/j.jimonfin.2012.11.014

Cited by 33 publications

(21 citation statements)

References 31 publications

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“…also Howells, ). Recently, Badarudin et al () found evidence of money endogeneity in G‐7 economies by applying both a VECM and a trivariate VAR.…”

Section: The Empirical Studies On the Nexus Between Loans And Bank Rementioning

confidence: 99%

“…Similar results emerge for other developed countries when applying the VAR and the vector error-correction model (VECM) econometric methods (cf. for instance Arestis, 1987;Badarudin, Ariff, & Khalid, 2013;Carpenter & Demiralp, 2012;Foster, 1994;Holtemöller, 2003;Howells & Hussein, 1998;Palacio Vera, 2001). In particular, Howells and Hussein (1998) applied a causality test within a VECM finding some empirical evidence for money supply endogeneity in G-7 countries together with signs of reverse causality from deposits to loans that they interpreted as evidence of money as an asset against Moore's idea of a limitless demand for money (cf.…”

Section: Loans and Bank Reservesmentioning

confidence: 99%

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The money creation process: A theoretical and empirical analysis for the United States

Deleidi

Levrero

2019

Metroeconomica

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The aim of this paper is to assess—on both theoretical and empirical grounds—the two main views regarding the money creation process, namely the endogenous and exogenous money approaches. After analysing the main issues and the related empirical literature, we will apply a vector autoregression model and a vector error‐correction model methodology to the United States for the period 1959–2017 to assess the causal relationship between a number of critical variables that are supposed to determine the money supply, that is, the monetary base, bank deposits, bank loans and the nominal level of economic activity. The empirical analysis supports several propositions related to the endogenous money approach. In particular, it shows that for the United States in the years 1959–2017 (a) bank loans determine bank deposits and (b) bank deposits in turn determine the monetary base. Our conclusion is that money supply is mainly determined endogenously by the lending activity of commercial banks and the nominal level of economic activity.

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“…also Howells, ). Recently, Badarudin et al () found evidence of money endogeneity in G‐7 economies by applying both a VECM and a trivariate VAR.…”

Section: The Empirical Studies On the Nexus Between Loans And Bank Rementioning

confidence: 99%

Section: Loans and Bank Reservesmentioning

confidence: 99%

The money creation process: A theoretical and empirical analysis for the United States

Deleidi

Levrero

2019

Metroeconomica

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“…As técnicas estatísticas de causalidade são utilizadas para determinar a relação causal entre duas ou mais séries em um teste de hipóteses (BADARUDIN et al, 2013).…”

Section: Teste De Causalidade De Grangerunclassified

Relação entre investimentos em intangíveis e produtividade total de fatores: um estudo do setor industrial brasileiro

Vaz

Benedicto

Carvalho

et al. 2014

R. Contemp. Contab.

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“…Many economists have frequently argued that the money supply is endogenously determined (Howells and Hussein, 1998;Badarudin et al, 2011Badarudin et al, , 2013Thenuwara and Morgan, 2017, among others). The theory of money endogeneity focuses on bank loan as a determinant of changes in the money supply.…”

Section: Introductionmentioning

confidence: 99%

Does the Bank of Thailand Have the Control Over the Money Supply?

Jiranyakul

2019

SSRN Journal

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This paper estimates the broad money multiplier for Thailand using monthly data from 1997M1 to 2017M12. It is found that there is nonlinear relationship between money supply and monetary base. An increase in monetary base causes the broad money supply to increase proportionally, and vice versa. This implies that the estimated money multiplier is stable during the period of investigation. This finding suggests that the Bank of Thailand has the ability to control the broad money supply. The finding also points to the soundness of the current monetary policy regime.

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Post-Keynesian money endogeneity evidence in G-7 economies

Cited by 33 publications

References 31 publications

The money creation process: A theoretical and empirical analysis for the United States

The money creation process: A theoretical and empirical analysis for the United States

Relação entre investimentos em intangíveis e produtividade total de fatores: um estudo do setor industrial brasileiro

Does the Bank of Thailand Have the Control Over the Money Supply?

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