Advertisement

Lost and Found: Some History of Endogenous Money in the Twentieth Century

  • Victoria Chick

Abstract

This chapter started in an airport waiting room. I happened on Tim Congdon, and we talked about Keynes’s monetary theory while we waited for our flight. The conversation brought into sharp focus an idea that had been festering in the back of my mind for some little time: that I had been brought up to take the endogenous generation of money (deposits) by banks for granted; why was it necessary for the modern theory of endogenous money to re-invent the concept? But Tim had been given a very different understanding. An informal survey of other economist friends of roughly his age (currently (2003) around the age of fifty), showed a pretty uniform experience of having been taught that ‘the central bank provides money and the banks multiply it’, as Roger Backhouse (in conversation) succinctly characterised the money-base theory of the money supply. Clearly something had happened somewhere between the time of my under- and post-graduate education in the late 1950s-early 60s to theirs some 15 years later.

Keywords

Central Bank Banking System Federal Reserve Money Supply Cash Holding 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Agger, E.E. (1918) Organized Banking (New York: Holt).Google Scholar
  2. Ahmed, S. (1970) ‘Is Money Net Wealth?’, Oxford Economic Papers, 22, pp. 357–61.Google Scholar
  3. Angell, J.A. and Ficek, K.F. (1933) ‘Expansion of Bank Credit’, Journal of Political Economy, 41, pp. 1–32 and 152–93.CrossRefGoogle Scholar
  4. Auerbach, R.D. (1985) Money, Banking and Financial Markets (New York: Macmillan).Google Scholar
  5. Bagehot, W. (1873) Lombard Street (London: P.S. King).Google Scholar
  6. Barger, H. (1964) The Management of Money (New York: Rand McNally).Google Scholar
  7. Bernstein, E.M. (1935) Money and the Economic System (Chapel Hill: University of North Carolina Press).Google Scholar
  8. Boughton, J.M. and Wicker, E.R. (1975) The Principles of Monetary Economics (Homewood, IL.: R.D. Irwin).Google Scholar
  9. Chandler, L. (1959) The Economics of Money and Banking, 3rd edn (New York: Harper). First US edn 1948.Google Scholar
  10. Chick, V. (1977) The Theory of Monetary Policy (2nd edn, Oxford: Blackwell) (1st edn, London: Gray-Mills, 1973).Google Scholar
  11. Chick, V. (1986) ‘The Evolution of the Banking System and the Theory of Saving, Investment and Interest’, Économies et sociétés, Cahiers de I’ISMEA, Paris, Série ‘Monnaie et Production’, 3, pp. 111–26.Google Scholar
  12. Cochran, J.A. (1979) Money; Banking and the Economy, 4th edn (New York: Macmillan).Google Scholar
  13. Crick, W.F. (1927) ‘The Genesis of Bank Deposits’, Economica, 7, pp. 191–202.Google Scholar
  14. (Repr. in F.A. Lutz and L.W. Mints, (eds) Readings in Monetary Theory (New York: Blakiston, 1951).) Page references to reprint. [Keynes (1930) and Schumpeter (1954) both give Crick’s initials as F.W. He appears as W.F. in the original source.]Google Scholar
  15. Crowther, G. (1940) An Outline of Money (London: Thomas Nelson).Google Scholar
  16. Currie, L. (1934) The Supply and Control of Money in the United States (Cambridge, MA: Harvard University Press).Google Scholar
  17. Curtis, M. and Townshend, H. (1937) Modem Money (London: Harrap).Google Scholar
  18. Davenport, H.J. (1913) The Economics of Enterprise (New York: Macmillan).Google Scholar
  19. Dowrie, G.W. (1936) Money and Banking (New York: Wiley).Google Scholar
  20. Ellis, H.S. (1934) German Monetary Theory, 1905–1933 (Cambridge, MA: Harvard University Press).CrossRefGoogle Scholar
  21. Frazer, W.J. and Yohe, W.P. (1966) An Introduction to the Analeptics and Institutions of Money and Banking (Princeton: Princeton University Press, 1966).Google Scholar
  22. Friedman, M. and Schwartz, A. (1963) A Monetary History of the United States, 1867–1960 (Princeton University Press for NBER).Google Scholar
  23. Goldfeld, S.M. and Chandler, L.V. (1981) Economics of Money and Banking (New York: Harper & Row).Google Scholar
  24. Goodhart, C.A.E. (1975) Money, Information and Uncertainty, 1st edition (London: Macmillan).Google Scholar
  25. Goucher, D.J. (1990) The Monetary and Financial System (London: Chartered Institute of Bankers).Google Scholar
  26. Gurley, J.G. and Shaw, E.S. (1960) Money in a Theory of Finance (Washington: Brookings Institution).Google Scholar
  27. Hall, M.J.B. (1983) Monetary Policy since 1971 (London: Macmillan).Google Scholar
  28. Hanson, J.L. (1978) Monetary Theory and Practice, 6th edn (Plymouth: Macdonald & Evans).Google Scholar
  29. Harrod, R.F. (1969) Money (London: Macmillan).CrossRefGoogle Scholar
  30. Hart, A.G. (1948) Money; Debt and Economic Activity (New York: Prentice-Hall).Google Scholar
  31. Hawtrey, R.G. (1919) Currency and Credit, 1st edn (London: Longmans) (4th edn 1950).Google Scholar
  32. Humphrey, T.M. (1987) ‘The Theory of Multiple Expansion of Deposits: What it is and Whence it Came’, Federal Reserve Bank of Richmond Economic Review, pp. 3–11.Google Scholar
  33. Kaufman, G.C. (1973) Money, the Financial System and the Economy (Chicago: Rand McNally).Google Scholar
  34. Kent, R.P. (1966) Money and Banking, 5th edn (New York: Holt, Rinehart & Winston).Google Scholar
  35. Keynes, J.M. (1930) A Treatise on Money (London: Macmillan).Google Scholar
  36. King, D. (1987) Banking and Money (Sevenoaks: Edward Arnold).Google Scholar
  37. Klein, J.J. (1982) Money and the Economy, 5th edn (New York: Harcourt Brace).Google Scholar
  38. Laidler, D. (1999) Fabricating the Keynesian Revolution (Cambridge University Press).Google Scholar
  39. Laughlin, J.L. (1903) The Principles of Money (New York: Scribner).Google Scholar
  40. Laughlin, J.L. (1931) Money, Credit and Prices, 2 vols (Chicago: University of Chicago Press).Google Scholar
  41. Lavoie, M. this volume.Google Scholar
  42. Leaf, W. (1999) Banking (London: Williams & Norgate, 1926) (Reissued Routledge).Google Scholar
  43. Lombra, R. and Torto, R. (1973) ‘Federal Reserve “Defensive” Behavior and the Reverse Causation Argument’, Southern Economic Journal, 40, pp. 47–55.CrossRefGoogle Scholar
  44. Macleod, H.D. (1855–6) Theory and Practice of Banking (London: Longmans).Google Scholar
  45. Marshall, A. (1965 [1923]) Money, Credit and Commerce (New York, Kelley).Google Scholar
  46. Marshall, R.H. and Swanson, R.B. (1974) The Monetary Process (Boston: Houghton Mifflin).Google Scholar
  47. McKenna, R. (1925) ‘Commodity Prices and the Gold Standard’, in R. McKenna (ed.) Post-war Banking Policy: A Series of Addresses (London: Heinemann, 1928), pp. 88–103.Google Scholar
  48. Meade, J.E. (1934) ‘The Amount of Money and the Banking System’, Economic Journal, 44, pp. 77–83.CrossRefGoogle Scholar
  49. Meigs, A.J. (1972) Money Matters (New York: Harper & Row).Google Scholar
  50. Mills, R.C. and Walker, E.R. (1952) Money, 13th edn (Sydney: Angus & Robertson).Google Scholar
  51. Mishkin, F.S. (1986) The Economics of Money, Banking, and Financial Markets (Boston: Little, Brown).Google Scholar
  52. Newlyn, W.T. (1971) Theory of Money (Oxford University Press).Google Scholar
  53. Nogaro, B. (1927) Modem Monetary Systems (London: P.S. King).Google Scholar
  54. Pesek, B.P. and Saving, T.R. (1967) Money, Wealth and Economic Theory (New York: Macmillan).Google Scholar
  55. Peterson, J.M. and Cawthorne, D.R. (1941) Money and Banking (New York: Macmillan).Google Scholar
  56. Phillips, C.A. (1920) Bank Credit (New York: Macmillan).Google Scholar
  57. Prather, C.L. (1937) Money and Banking (Chicago: Business Publications).Google Scholar
  58. Ritter, L.S. and Silber, W.S. (1970) Money, 1st edn (New York: Basic Books) (3rd edn, 1977).Google Scholar
  59. Robertson, D.H. (1928) Money, 3rd edn (London: Nisbet).Google Scholar
  60. Sause, G.G. (1966) Money, Banking and Economic Activity (Boston: D.C. Heath).Google Scholar
  61. Sayers, R.S. (1939) Modern Banking, 1st edn (Oxford University Press) (6th edn, 1964).Google Scholar
  62. Schumpeter, J.A. (1934 [1912]) The Theory of Economic Development, trans. R. Opie (Cambridge, MA: Harvard Economic Studies) (First published in German, 1912).Google Scholar
  63. Schumpeter, J.A. (1954) A History of Economic Analysis (London: Allen & Unwin).Google Scholar
  64. Scott, R.H. (1995) Money, Financial Markets and the Economy (Singapore: Prentice-Hall).Google Scholar
  65. Shapiro, E., Solomon, E. and White, W.L. (1968) Money and Banking (New York: Holt, Rinehart & Winston).Google Scholar
  66. Shaw, E.S. (1950) Money, Income and Monetary Policy (Chicago: R.D. Irwin).Google Scholar
  67. Skidelsky, R. (1995) ‘J.M. Keynes and the Quantity Theory of Money’, in M. Blaug et al, The Quantity Theory of Money: from Locke to Keynes and Friedman (Cheltenham: Edward Elgar).Google Scholar
  68. Smith, H.M. (1968) The Essentials of Money and Banking (New York: Random House).Google Scholar
  69. Smith, P.F. (1978) Money and Financial Intermediaries (Englewood Cliffs: Prentice-Hall).Google Scholar
  70. Struthers, J. and Speight, H. (1986) Money: Institutions, Theory and Policy (London: Longmans).Google Scholar
  71. Thomas, L.B. Jr (1979) Money, Banking and Economic Activity (Englewood Cliffs: Prentice-Hall).Google Scholar
  72. Thomas, R.G. (1964) Our Modern Monetary System, 4th edn (Englewood Cliffs: Prentice-Hall).Google Scholar
  73. Tobin, J. (1963) ‘Commercial Banks as Creators of “Money”’, in D. Carson, (ed.) Banking and Monetary Studies (Homewood, IL: R.D. Irwin).Google Scholar
  74. Walker, F.A. (1981) Money (New York: Macmillan).Google Scholar
  75. Whittlesey, C.R. (1948) Principles and Practice of Money and Banking (New York: Macmillan).Google Scholar
  76. Withers, H. (1909) The Meaning of Money (London: Smith, Elder).Google Scholar
  77. Weil, P. (1991) ‘Is Money Net Wealth?’, International Economic Review, 32, pp. 37–53.CrossRefGoogle Scholar
  78. Wray, L.R. (1990) Money and Credit in Capitalist Economies (Aldershot: Edward Elgar).Google Scholar

Copyright information

© Victoria Chick 2005

Authors and Affiliations

  • Victoria Chick

There are no affiliations available

Personalised recommendations