Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/67949
Authors: 
Wäckerle, Manuel
Year of Publication: 
2013
Series/Report no.: 
Economics Discussion Papers 2013-5
Abstract: 
The complexity of credit money is seen as the central issue in the banking-macro nexus, which the author considers as a structural as well as a process component of the evolving economy. This nexus is significant for the stability/fragility of the economic system because it links the monetary domain with the real domain of economic production and consumption. The evolution of credit rules shapes economic networks between households, firms, banks, governments and central banks in space and time. The author discusses the properties and characteristics of this process in three sections. First, he discusses the origins of the theory of money and its role in contemporary monetary economics. Second, he briefly discusses current theoretical foundations of top-down and bottom-up approaches to the banking-macro nexus, such as DSGE or ABM. Third, he suggests an evolutionary framework, building on the generic-rule based approach, to arrive at standards for bottom-up foundations in agent-based models of the banking-macro nexus.
Subjects: 
20th century origins of the theory of money
Schumpeterian credit-driven innovation
Post-Keynesian endogenous money
top-down versus bottom-up
evolutionary institutional approach to bank lending
generic credit rules as bottom-up foundations
JEL: 
E41
G21
B52
B25
C63
E51
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/
Document Type: 
Working Paper

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