The present chapter applies the accounting lessons and the pricing behaviour that we discussed in Chapter 8. A preliminary model describing a closed economy with no government is deployed, based on ‘inside’ money created by banks. After having explored its main features, we will be able to move on to two more realistic models of a whole modern industrial monetary economy, those of Chapters 10 and 11, that deal simultaneously with privately issued money and government-issued money.
CITATION STYLE
Godley, W., & Lavoie, M. (2007). A Model with Private Bank Money, Inventories and Inflation. In Monetary Economics (pp. 284–313). Palgrave Macmillan UK. https://doi.org/10.1057/9780230626546_9
Mendeley helps you to discover research relevant for your work.