Money is a resource with a set of characteristics that are embodied in different combinations in monetary assets (forms of money). The main characteristics of money are: trustworthiness, divisibility, maintenance of value over location & time, limitation of supply, and convenience. These characteristics allow money to be used in accounting and recording of transactions & wealth; and forms of money to be used as mediums of exchange and savings. Monetary assets include notes & coin, bank loans/deposits, credit & debit cards, and various government-backed and short-term bills of exchange.

Since commercial banks can generate loans if consumers or firms request them, the supply on money is endogenous to the monetary system.

Relevant papers:

Barker (2010)


Barker, Terry ‘Endogenous money in 21 Century Keynesian economics’, chapter 6, pp. 202-239 in Philip Arestis and Malcolm Sawyer (eds) 21 Century Keynesian Economics, Palgrave Macmillan, 2010.

Fontana G. 2009. Money, Uncertainty and Time. Psychology Press

Skidelski, Robert (2018) Money and Government: A Challenge to Mainstream Economics, Allen Lane, London.

Simmel, Georg (1900) The Philosophy of Money

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