The paper presents a historical account of the evolution of modern financial systems. It is argued that money supply had been exogenous for the most part of history, but the demise of gold standard and the development of central banking have rendered it endogenous. The analysis is supported by a...

The post-Keynesian approach to the nature of money brings some other conclusion to the monetary policy, independence of a central bank and function of commercial banks. The source money is created by demand of businessmen especially. Loans create deposits, deposits create reserves. Central bank...

Post-Keynesian approach to the nature of money brings some strong conclusions for the monetary policy of a central bank. Money is created by provision of loans. Loans make deposits. Deposits make reserves, since central banks play the role of a lender of last resort. Banks thus may provide as...