Money supply and interest rate in recent macroeconomic conceptions. A comment

Abstract

In two studies from recent years Professor Amadeo Gambino reopened the discussion of the problem of the determinants of the volume of bank deposits. The conclusions reached in these studies diverged from the well-known Keynesian proposition according to which the volume of deposits is determined almost exclusively by the monetary authorities. Moreover, he specifically criticised Professor Schneider for asserting the general validity of that proposition. In the present comment, Schneider elaborates his point, drawing especially on the contributions to monetary theory of German economists such as Gestrich and Föhl. JEL: E51, E52, E58

Keywords

• Amadeo Gambino
• volume of bank deposits
• determinants
• monetary authorities
• policy