Money and banking

Marc Lavoie (1, 2) , Mario Seccareccia (2)

1 CEPN - Centre d'Economie de l'Université Paris Nord
2 University of Ottawa [Ottawa]

The chapter explains the heterodox approach to money and banking and contrasts it with the mainstream. It focuses on the importance of the creation and destruction of money by the banking system and on the crucial role played by the interbank market for funds and the payment and settlement system. It points out the credit money creation is demand led.

Mots clés: heterodox approach to money and banking; banking system; interbank market; settlement system; credit money

Domaines: Economies et finances

Marc Lavoie, Mario Seccareccia. Money and banking. LP. Rochon and S. Rossi. Introduction to Heterodox Macroeconomics, Edward Elgar, pp.97-116, 2016, 9781849801119. ⟨hal-01435719⟩