Abstract

This paper contains a critical examination of the concept of endogenous money
proposed by Kaldor and Moore, and defended by Nogueira da Costa, sustaining the
“horizontalist” approach to the determination of money supply. An alternative approach is
outlined, built upon Keynes’ views on money, emphasizing the nature of money as an asset
in a monetary production economy and acknowledging some initiative on monetary matters
on the part of the central bank.

JEL Classification: E51; E12; B22.