Money supply. Endogenous or exogenous variable? With reference to Iraq
Journal: Banks and bank systems [electronic resource] (Vol.12, No. 4)Publication Date: 2017-12-26
Authors : Falah Hasan Thwaini; Ahmed Abdulzahra Hamdan;
Page : 144-153
Keywords : accommodationists policy; endogenous money; post-Keynesian economics; structuralists monetary policy in Iraq;
Abstract
The issue of whether money supply is a dependent or an independent variable remains a debating one, especially with the ongoing development and innovation of institutions, tools, and financial, monetary, and banking derivatives. In general, we can say that there are two trends of thought about the issue under consideration. The first trend views money supply as an exogenous variable because the monetary authority can control and monitor it. The second one views money supply as an endogenous variable because Federal Bank has no ability to affect it, especially when nominal or money income is changed and reflected on money multiplier and money supply, and also when the monetary authority cannot restrict the monetary expansion as a result of different factors related to the economy structure or related to other non-economic factors.
Other Latest Articles
- ASSESSMENT OF THE FLUSHING LEVEL OF SALTED SOILS IN THE RICE SYSTEMS WITH COMPLICATED HYDROGEOLOGICAL CONDITIONS
- An investigation into the best approach to the implementation of Basel II in Swaziland
- Accounting of non-performing long-term bank loans in Ukraine
- Banking in Ukraine as an object of criminal and legal protection
- OPTIMIZATION OF COMPONENTS FOR HIGH-TEMPERATURE SYNTHESIS OF TRIBOTECHNICAL APPLICATION MATERIALS
Last modified: 2018-03-15 18:39:22