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Endogenous money and Chartalism: Are they compatible?

Published online by Cambridge University Press:  10 September 2025

Eduardo Garzón Espinosa Open the ORCID record for Eduardo Garzón Espinosa [Opens in a new window]
Eduardo Garzón Espinosa*
Affiliation:
Universidad Autónoma de Madrid, Madrid, Spain
*
Email: eduardo.garzon.espinosa@gmail.com
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Abstract

The endogenous money approach has a long history and development, but the proponents of Modern Monetary Theory point out that it can be extended by Chartalism and the leading role it gives to money created by the State. In this paper, we test this assertion by making a critical analysis of their contributions and reviewing the opposing positions. We conclude that, indeed, the integration of the endogenous money and state money views in a same theorical framework seems to offer a coherent explanation of monetary phenomena.

Keywords

Bank creditChartalismendogenous moneyheterodoxModern Monetary Theorypost-Keynesian economicsStateE41E51E52

Information

Type
Original Article
Information
The Economic and Labour Relations Review , Volume 36 , Issue 2 , June 2025 , pp. 582 - 593
Copyright
© The Author(s), 2025. Published by Cambridge University Press on behalf of The University of New South Wales

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