Year: 2025
Type: article
Abstract: Contrary to earlier exogenous approaches, it is now accepted, particularly among monetary experts, that the creation and the putting into circulation of money in modern financial systems is an endogenous process. However, there is still a significant delay in drawing a number of conclusions. This article presents what we consider to be the most important implications for the monetary policy toolbox, the implementation of monetary policy and international capital flows. An endogenous money creation approach can help to provide a more solid foundation for analyses and avoid possible economic policy mistakes.
Source: Financial and Economic Review
DOI: 10.33893/fer.24.1.74
Authors: Péter Aradványi, Zoltán Szalai
Institution: Hungarian National Bank
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409061375