Con el reciente paper del Banco de Inglaterra parece que la econosfera ha vuelto a poner su atención en la economía monetaria y en el proceso de creación de dinero. Entender el proceso por el cual los bancos crean el dinero es importante para entender el mecanismo de transmisión de la política monetaria que realicen los bancos centrales, elemento indispensable para poder debatir qué es lo que necesitan las economías y para entender el funcionamiento de la realidad económica.
No voy más que a adjuntar los artículos que vayan saliendo sobre el tema y crea que son relevantes. No es que sea un tema nuevo, pero si parece haberse vuelto a poner de moda.
- Money in the modern economy: an introduction <- La introducción al tema por parte del banco de Inglaterra.
- Money creation in the modern economy <- El artículo original del banco de Inglaterra.
The reality of how money is created today differs from the description found in some economics textbooks: Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits. In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.
- Bank of England on Endogenous Money
- Reserve abundance and inflation: a response to Andrew Lilico
- The money multiplier is dead
Banks lend when the risk/return profile is in their favour. When it is not, no amount of extra reserve creation will make them lend. Monetary policy therefore focuses on the PRICE of money, not its quantity, since changes in the price of money will influence the returns available to banks for lending and therefore their willingness to lend.
- Reconciliation Of The Supply And Demand For Money
- Money Stock Determination
- A Minskyian interpretation of endogenous money creation: central banks don’t always rule the roost
During the last two or three decades the larger part of money was not created because of GDP-transactions related lending but by mortgage lending. As house related lending and borrowing have increasingly become activities on a kind of asset market, speculative and Ponzi borrowing has become increasingly important on this market which means that the GDP-interest rate is not that important when it comes to restraining lending.
I disagree with it. Thinking about monetary policy in terms of interest rate policy just doesn’t work. It doesn’t work in theory, and it doesn’t work in practice. That’s why the Bank of England is having to do QE, and is having to re-introduce the old general theory of monetary policy as a special theory for QE.
If we have learned anything from the economic stagnation of the past few years it is that the demand for credit is what truly drives credit creation and the supply price of credit is of secondary importance.
They (the banks) write up a loan contract, expand their balance sheet endogenously (which creates a loan asset for the bank, a deposit liability for the bank, a deposit asset for the borrower and a loan liability for the customer) and, if they must, the bank will find reserves to meet reserve requirements AFTER the fact (in the interbank market or via the Central Bank).
Leading economists can’t just ignore this paper, or blithely dismiss it as the foot-soldiers of the profession will do. But I seriously doubt that they will let it challenge their current position.
Why did the Bank of England suddenly admit all this? Well, one reason is because it’s obviously true. The Bank’s job is to actually run the system, and of late, the system has not been running especially well. It’s possible that it decided that maintaining the fantasy-land version of economics that has proved so convenient to the rich is simply a luxury it can no longer afford.
This might force a few economists to rethink their models, but I doubt we’ll see big shifts in policy any time soon. If anything, all this does is shift the discussion away from default in some countries and more towards inflation. But that’s about it.
- Bank of England Research Paper on Endogenous Money
- Bank of England Admits that Loans Come FIRST … and Deposits follow <- Algo largo pero muy interesante, con entrevista a Wray.
- Credit Controls & the Crisis
- Bank says money multiplier is wrong – should we be shocked? <. De Mainly Macro, muy recomendable también.