There is a body of literature labelled life-cycle theory of consumption. Its genesis was in the 1950s and its champions were Franco Modigliani and his student Richard Brumberg, as expounded in papers published in 1954 and 1980. In essence the theory postulates that individuals make intelligent choices on the volume of their spending at each phase of their lives, and this is constrained only by …
e endogenous-exogenous money debate is a futile one. Exogenous money creation, based on the money multiplier, is not a money creation process. Rather, it is a monetary policy model, but in it money is still created endogenously: bank loans (and foreign asset accumulation by banks) concurrently create new bank deposits (money). This simple fact is obscured by the powerful thesis of Friedmanian M…
The purpose of this text is to provide an overview of the equity market and its role in the financial system. We start with a brief introduction to the financial system, and then contrast the equity market with the money and debt markets. A definition of the equity market is presented and dissected into its elements. The statutory backdrop to equities and the equity market is presented in brief…