Money Creation in the Modern Economy

By M. McLeay, Amar Radia, Ryland Thomas. 2014

875 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/94a9594583d4a8ef7685f393cbf8811facb2883a

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Citations in the corpus

From financial instability to green finance: the role of banking and credit market regulation in the Eurace model (2019, background): “…the relevant features needed to address our research question, such as the endogenous nature of money created by the banking system in modern economies, see e.g. McLeay et al. (2014); Werner (2014), and the non-equilibrium evolutionary dynamics of the economy (Kaldor (1972); Arthur (2006)).”
The Macroeconomics of Central Bank Issued Digital Currencies (2016, background): “The main example is the open economy literature with incomplete asset markets (Schmitt-Grohé and Uribe (2003), Neumeyer and Perri (2005)).”
A Financial Macro-Network Approach to Climate Policy Evaluation (2018, background): “• a limited understanding of modern money theory as regards the endogenous creation 164 of money by credit institutions and the flow of money between the economic and the 165 financial system (Wray, 2015; McLeay et al., 2014); 166”
The role of money and the financial sector in energy-economy models used for assessing climate and energy policy (2015, background): “McLeay et al.(2014) provides a very clear summary of the processes involved but, in summary, the volume of loans and therefore money supply is at least in part determined by broader macroeconomic conditions (i.e. whether the banks see profitable commercial opportunities).”
Speaking to the people? Money, trust, and central bank legitimacy in the age of quantitative easing (2016, background): “(McLeay et al., 2014b: 15) Thirdly, and most significantly, the Bulletin articles rejected the monetary base multiplier and the myth of exogenous money – and thus the notion of central bank control of the money supply: In normal times, the central bank does not fix the amount of money in…”
Agent based-stock flow consistent macroeconomics: Towards a benchmark model (2016, background): “This is a consequence of the pro-cyclical behavior of firms’ total debt (explained below): the endogeneity of money in the model and the adoption of stock flow consistent rules implies that, as in reality, every new loan is accompanied by the creation of a new deposit of equal value, so that the loa”
Macroeconomic impact of stranded fossil fuel assets (2018, background): “It assumes that commercial banks lend according to bank reserves, which are created on-demand by the central bank 36-38 .”
Beyond carbon pricing: the role of banking and monetary policy in financing the transition to a low-carbon economy (2015, background): “Banks do not have to wait for a deposit to come in in order to lend the money but they create the new deposit themselves, just by typing it into the account of the customer who received the loan (McLeay et al. 2014).”
Modelling complex systems of heterogeneous agents to better design sustainability transitions policy (2015, background): “A post-Schumpeterian or post-Keynesian perspective also allows for fluctuating amounts of money in the economy, and indeed, this is what is observed (called endogenous money, as explained by the Bank of England, see McLeay et al., 2014).”
The (impossible) repo trinity: the political economy of repo markets (2016, background): “Whenever it has tried so, interest rates on the interbank market where banks lend and borrow reserves without collateral became highly volatile (McLeay et al., 2014).”