Post Keynesian Models of the Credit Market and the Reserve Market

Issue title: Computational and Mathematical Methods for Science and Engineering Conference 2002 – CMMSE-2002

Article type: Research Article

Authors: Fontana, Giuseppe^{a; *} | Venturino, Ezio^b

Affiliations: [a] Department of Economics, University of Leeds Business School, University of Leeds, Leeds, LS2 9JT, UK | [b] Dipartimento di Matematica, via Carlo Alberto 10, Universita' di Torino, 10123 Torino, Italy

Correspondence: [*] Corresponding author. Tel.: +44 113 343 4503; Fax: +44 113 343 4465; E-mail: gf@lubs.leeds.ac.uk.

Abstract: The paper discusses two Post Keynesian models in a closed economy, for the credit market and the reserve market respectively. The models are grounded on the idea that (a) bank loans create deposits and (b) deposits make monetary reserves. The main differences between these monetary models are due to different assumptions about the state of expectations of agents involved in the money supply process.

Keywords: post Keynesian economics, horizontalists, structuralists, liquidity preference, credit market, reserve market

DOI: 10.3233/JCM-2004-41-204

Journal: Journal of Computational Methods in Sciences and Engineering, vol. 4, no. 1-2, pp. 17-23, 2004