Question

In: Economics

Is money exogenous or endogenous? What does this mean?

Is money exogenous or endogenous? What does this mean?

Solutions

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


Related Solutions

In your view, is the supply of money exogenous or endogenous? In your answer refer to...
In your view, is the supply of money exogenous or endogenous? In your answer refer to both theoretical arguments and empirical evidence, and be sure to discuss what you mean by 'money'. Word Limit – 750
1. Compare and contrast the exogenous and endogenous views of the money supply process. Integrate the...
1. Compare and contrast the exogenous and endogenous views of the money supply process. Integrate the endogenous view into the Keynesian analysis of the investment- saving relation 2. What are the institutional mechanisms through which banks can extend their lending capacity beyond the limits imposed by reserve requirements?
exogenous vs endogenous pathogens flowchart
exogenous vs endogenous pathogens flowchart
compare how exogenous and endogenous growth models view capital as a factor of input
compare how exogenous and endogenous growth models view capital as a factor of input
What does ‘the hierarchy of money’ mean?
What does ‘the hierarchy of money’ mean?
Define the velocity of money. What does it mean if the percent change in velocity is...
Define the velocity of money. What does it mean if the percent change in velocity is negative? Give a real-life example of how this could be possible? What central banking nightmare can occur if we see the percent change in velocity of money turn negative and the Fed does not react?
What does it mean to borrow money on a discount basis? This has to do with...
What does it mean to borrow money on a discount basis? This has to do with borrowing money from a bank on a discount basis. This is not related to bond issues/sales. (See chapter 7, page 238, "Interest Calculation Method"). Be cautious: borrowing on a discount basis has to do with going to a lender (banker) for a loan. Be sure not to confuse borrowing on a discount bases with the bond discount discussed later in chapter 7.
What does it mean when we say that money functions as a medium of exchange, as...
What does it mean when we say that money functions as a medium of exchange, as a store of value, and as a unit of account?
Describe the main ideas of the endogenous growth theory. What does it have to say about...
Describe the main ideas of the endogenous growth theory. What does it have to say about the role of government in economic growth?
Money is what Money does. Explain this statement.
Money is what Money does. Explain this statement.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT