Money

‘By changing money growth, the central bank can control inflation seen over a longer period, but to do that it has to take account of changes in real production and changes in velocity’. With reference to the quantity theory, and endogenous money, explain and discuss this statement. 

References

Abel, A., B Bernanke and D Croushore (2008). Macroeconomics, ch7.

Begg D, Vernasca et al (2010). Economics, ch 18.

DeLong, B and M Olney (2006). Macroeconomics, ch8 & ch8A 

Dornbusch, R., S Fischer and R Startz (2010). Macroeconomics, ch15.

Lipsey, L (2007). Economics, ch 21.

Gottfries, N. (2013) ch7.

Mankiw, NG (2013). Macroeconomics, ch5.

Lavoie, M. (2009), “Endogenous Money: Accomodationist” in P. Arestis and M. Sawyer eds., A Handbook of Alternative Monetary Economics, Edward Elgar, Cheltenham, 2009.

Bank of England (2014), “Money in the Modern Economy: An Introduction”, Bank of England Quarterly Bulletin, 2014-Q1

Bank of England (2014) “Money Creation in the Modern Economy”, Bank of England, Quarterly Bulletin, 2014-Q1

“The Quantity Theory of Money: A Critique” 

http://socialdemocracy21stcentury.blogspot.co.uk/2010/07/quantity-theory-of-money-critique.html

“Why is the Quantity Theory of Money Wrong and Can Anything be Salvaged from it?”

http://socialdemocracy21stcentury.blogspot.co.uk/2014/09/why-is-quantity-theory-of-money-wrong.html