The Post-Keynesian and Institutionalist Theory of Money and Credit
Author(s)
Arestis, Philip; Eichner, Alfred S.
Abstract
A model is developed that attempts to encapsulate the constituent elements of post-Keynesian and institutionalist monetary and credit theory. It also accounts for the openness of economic systems. It is argued that money is credit-driven and demand-determined. It is, in deed, tightly linked to the behavior of the enterprise sector and the economy as a whole. As such, money is an institution inseparable from the other institutions that comprise economic systems. When monetary theory is viewed in this way, it becomes radically different from the orthodox monetary theory that sees money independent of credit.
