tag:blogger.com,1999:blog-6245381193993153721.post8679391931532288748..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Empirical Evidence on Endogenous MoneyLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6245381193993153721.post-53358977135877365142013-08-17T08:42:55.228-07:002013-08-17T08:42:55.228-07:00In this work there is an alternative proposal for ...In this work there is an alternative proposal for testing endogenous money by means of the actual statistical definition of endeogeneity<br /><br />http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1994456Davidhttps://www.blogger.com/profile/15447373832509279040noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-59677612141909296132013-08-17T08:40:01.238-07:002013-08-17T08:40:01.238-07:00Interest-rate targeting is usually explained by ma...Interest-rate targeting is usually explained by mainstream as a consequence of the instability of monetary aggregates and of its relationship with inflation. They think that more stable monetary aggregates and absent price rigidties would prevent the Friedmanite model to fail, and New Consensus Model were developed after many central bankers were already using interest-rate-targeting.<br /><br />Post-Keynesians, in contrast, do have a theory about the necessity of interest-rate targeting in capitalist economies, and they have started to talk about it when the Friedmanite model were fashionable.Davidhttps://www.blogger.com/profile/15447373832509279040noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-36888602895312094062013-08-16T04:25:59.860-07:002013-08-16T04:25:59.860-07:00Hi,
http://papers.ssrn.com/sol3/papers.cfm?abstra...Hi,<br /><br />http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2084197<br /><br />This is an italian study of endogenous money in Eurosystem. <br /><br />"To sum up, loans influences M2 in the short run but this relationship does not exist in the long term. From the Granger causality test there is a one-way direction causality from M2 money multiplier (M2_B) to loans, from monetary base to loans and from industrial production index to loans. This implies that the Post-Keynesian view may not hold true in the case of Euro Area’s M2 money supply."<br /><br />But I'm not so good in econometrics to say something about. I think endogenous money is just more logic and confirmed by insiders. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-43069373687470667972013-08-10T15:54:05.770-07:002013-08-10T15:54:05.770-07:00It is a deep and crucial insight and the mainstrea...It is a deep and crucial insight and the mainstream's failure to grasp it has resulted in the mess we're in - globally - buried in both public and private debt.<br /><br />Monetary policy was viewed as a benign demand management tool that operated through mysterious "expectation" and "wealth" channels , when in reality it's almost entirely working through credit , building asset bubbles and debt bombs at the same time it was working its demand-management magic. <br /><br />Yes , the rest of you missed it badly , and many of you still don't get it. You'll be reminded of this cockup for many years to come.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-82159167712674607712013-08-10T07:29:15.098-07:002013-08-10T07:29:15.098-07:00I'd have a look at criticisms of these tests. ...I'd have a look at criticisms of these tests. Do you have any references?Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-43825507184388175892013-08-10T07:24:45.617-07:002013-08-10T07:24:45.617-07:00They haven't.
It does seems though that a lot...They haven't.<br /><br />It does seems though that a lot of what is described as endogenous money theory is just a description of how interest-rate targeting works. This system is more-or-less a pragmatic way of influencing the economy invented by a bunch of neo-classical central bankers. Post-Keynsians present it as if it provides some sort of deep insight into how money works that the rest of us are all missing.Rob Rawlingsnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-46946389166125677432013-08-10T07:20:33.489-07:002013-08-10T07:20:33.489-07:00This is new fashion Lord Keynes - claiming everyth...This is new fashion Lord Keynes - claiming everything is there in neoclassical/mainstream textbooks. Ramananhttps://www.blogger.com/profile/11123448543333785121noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-87628689848158444052013-08-10T07:14:11.313-07:002013-08-10T07:14:11.313-07:00Rob Rawlings@August 10, 2013 at 6:51 AM
(1) when ...Rob Rawlings@August 10, 2013 at 6:51 AM<br /><br />(1) when have Post Keynesians ever denied that the central bank can control interest rates?<br /><br />(2) when have Post Keynesians ever denied that the central bank is usually forced to supply reserves to the banking system on demand, or cause liquidity problems to the banking system?Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-88064973326222107832013-08-10T06:51:40.649-07:002013-08-10T06:51:40.649-07:00These studies appear to do no more than confirm t...These studies appear to do no more than confirm that interest rate targeting works exactly the way all the texts books say that it does and that the CB will accommodate any reserve requirements at a given overnight rate.<br /><br />Amazing.Rob Rawlingsnoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-63402752998728904902013-08-10T04:41:17.036-07:002013-08-10T04:41:17.036-07:00I completely agree with the idea of endogenous mon...I completely agree with the idea of endogenous money but I have this to say: the statistical study of causalities is not something I believe. My claim is to not to oppose endogenous money (obviously) but in fact the opposite. <br /><br />What I am saying is that the "causality tests" themselves are not the "truth" and are poorly formulated. <br /><br />Do you know any criticisms of these tests themselves?Ramananhttps://www.blogger.com/profile/11123448543333785121noreply@blogger.com