ABSTRACT
This paper contains a critical examination of the concept of endogenous money proposed by Kaldor and Moore, and defended by Nogueira da Costa, sustaining the “horizontalist” approach to the determination of money supply. An alternative approach is outlined, built upon Keynes’ views on money, emphasizing the nature of money as an asset in a monetary production economy and acknowledging some initiative on monetary matters on the part of the central bank.
KEYWORDS:
Money supply; post-Keynesianism; history of economic thought