Quotation Scholz-Wäckerle, Manuel. 2013. On the Bottom-up Foundations of the Banking-Macro Nexus. Economics: The Open-Access, Open-Assessment E-Journal 7 (40): http://www.economics-ejournal.org/economics/journalarticles/2013-40.




The complexity of credit-money is conceived as the central issue in the banking-macro nexus, which the author considers as a structural as well as process component of the evolving economy. This nexus is significant for the stability as well as the fragility of the economic system, because it connects the monetary with the real domain of economic production and consumption. The evolution of credit rules shapes economic networks between households, firms, banks, governments and central banks in space and time. The properties and characteristics of this evolutionary process are discussed in three sections. First, the author looks into the origins of the theory of money and its role for contemporary monetary economics. Second, he briefly discusses current theoretical foundations of top-down as well as bottom-up approaches to the banking-macro nexus, such as dynamic stochastic general equilibrium and agent-based models. In the third part he suggests an evolutionary framework, building on a generic rule-based approach, to arrive at standards for bottom-up foundations in agent-based macroeconomic models with a banking sector.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication eJournal article
Journal Economics: The Open-Access, Open-Assessment E-Journal
Citation Index SSCI
Language English
Title On the Bottom-up Foundations of the Banking-Macro Nexus
Volume 7
Number 40
Year 2013
Pages 1-45
Reviewed? Y
URL http://www.economics-ejournal.org/economics/journalarticles/2013-40
JEL E02 B25 B52 E41 E51 G21 C63
DOI http://dx.doi.org/10.5018/economics-ejournal.ja.2013-40


Scholz-Wäckerle, Manuel (Details)
Institute for Multi-Level Governance and Development IN (Details)
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