Template-Type: ReDIF-Article 1.0

Author-Name: Peter Aradvanyi 
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: aradvanyip@mnb.hu
Author-Person: 

Author-Name: Zoltan Szalai
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: szalaiz@mnb.hu
Author-Person:

Title: Endogenous Money Supply Theories and Their Main Implications

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.

Classification-JEL: E41, E51, E52, E58, F32, F36
Keywords: interbank market, monetary policy toolkit, endogenous monetary theory, current account, net and gross international capital flows, sterilisation
Pages: 74-100
Volume: 24
Issue: 1
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st4-aradvanyi-szalai.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:74-100