Is money exogenous or endogenous? What does this mean?

Expert Solution

money exogenous

Money is considered exogenous or endogenous depending on its relationship to the economy. If its existence and quantity are determined by the economy alone, money is considered endogenous. Conversely, if the existence and quantity of money are determined by forces outside the economy—most often by the state—money is considered exogenous. Since the inception of recorded monetary thinking, there has been an ongoing debate about whether money should be treated as endogenous or exogenous

Rahul Sunny answered 1 year ago

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