Money in Finance

Levy Economics Institute of Bard College Working Paper No. 656

15 Pages Posted: 20 Mar 2011

See all articles by L. Randall Wray

L. Randall Wray

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

Date Written: March 14, 2011

Abstract

This paper begins by defining, and distinguishing between, money and finance, and addresses alternative ways of financing spending. We next examine the role played by financial institutions (e.g., banks) in the provision of finance. The role of government as both regulator of private institutions and provider of finance is also discussed, and related topics such as liquidity and saving are explored. We conclude with a look at some of the new innovations in finance, and at the global financial crisis, which could be blamed on excessive financialization of the economy.

Keywords: Money, Money of Account, Finance, Financial Instruments, Financial Institutions, Financial Innovation, Financialization, Liquidity, Saving, State Money, Chartalism, Shadow Bank, Hyman Minsky, Securitization, Robert Clower

JEL Classification: B14, B15, B22, B52, E12, E40, E42, E50, E51, E52, G14, G21

Suggested Citation

Wray, L. Randall, Money in Finance (March 14, 2011). Levy Economics Institute of Bard College Working Paper No. 656. Available at SSRN: https://ssrn.com/abstract=1785660 or http://dx.doi.org/10.2139/ssrn.1785660

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

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

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