Money and Inflation

21 Pages Posted: 28 Jan 2014

See all articles by L. Randall Wray

L. Randall Wray

University of Missouri at Kansas City; Bard College - The Levy Economics Institute

Date Written: September 1, 2000


This paper explores theoretical approaches to money and inflation and examines the link between the two.

I start with a review of the modern orthodox approach, which presumes that the money supply is determined by government policy and focuses on controlling inflation. I then describe and contrast recent Post Keynesian work on money, which is based on a neo-Chartalist, or state money, approach. Finally, I link the neo-Chartalist approach more directly to PK theories of money, prices, and inflation.

Keywords: inflation, money supply, state money, neo-Chartalism, prices

Suggested Citation

Wray, L. Randall, Money and Inflation (September 1, 2000). Available at SSRN: or

L. Randall Wray (Contact Author)

University of Missouri at Kansas City ( email )

5100 Rockhill Road
Kansas City, MO 64110-2499
United States

Bard College - The Levy Economics Institute

Annandale-on-Hudson, NY 12504-5000
United States

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