Abstract
p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px 'Minion Pro'; min-height: 14.0px} p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; text-align: justify; line-height: 10.1px; font: 10.0px 'Minion Pro'; color: #2d2829} span.s1 {font: 12.0px 'Minion Pro'; color: #000000} Endogenous money view can be described as the supply of money is not under the absolute control of the central banks and emerges endogenously within financial markets, market structure and credit availability. Most importantly, the theory of endogenous money reveals enormous significance of the source of interest rates in the definition of financial fragility. The aim of this article is to present the post-Keynesian theme of the monetary circuit as argued by the General Theory of Transformational Growth. According to this approach, capital adequacy requirements are procyclical, and for this reason, it is important to analyze the relationship between the growth rate and the rate of interest, since the growth of bank capital is tied to the latter.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
