This thesis is about (a) money supply being determined by banking behaviour, or by the behaviour of central banks and (b) the influence of money supply on bank stock returns. That money is endogenously determined is a proposition of post-Keynesian (PK) economists suggesting that money supply is determined by the behaviour of commercial banks as banks adjust money creation in response to credit demands by the public. This theory challenges the monetarist view of exogenous money supply, where the central bank is said to control money supply. This thesis examines how, under the credit-creation behaviour of banks, the money supply affects bank stock returns in a multi-equation model.

Year Manuscript Completed



Banks and banking, Central; Finance Mathematical models.

Primary Language of Manuscript


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