The fre­quen­cy and inten­si­ty of finan­cial cri­ses in the last deca­des have been a chall­enge for sus­tainable growth. The aca­de­mic com­mu­ni­ty is try­ing to find the way out by offe­ring prac­ti­cal solu­ti­ons. Howe­ver, more and more issues are on the go becau­se each cri­sis has dif­fe­rent occa­si­ons indu­ced by inter­nal and exter­nal fac­tors, which vary in their eco­no­mic impli­ca­ti­ons. The­re is an urgent need to deve­lop an effec­ti­ve sys­tem of pre­ven­ti­ve mea­su­res based on ear­ly war­ning indi­ca­tors. The indi­ca­tors cover a gre­at deal of eco­no­mic acti­vi­ty but focus on the fun­da­men­tal iden­ti­ties that are key ele­ments of sus­tainable growth. One of tho­se iden­ti­ties is a quan­ti­ty equa­ti­on of exch­an­ge. The modern inter­pre­ta­ti­on of the Quan­ti­ty Theo­ry of Money (QTM) has much to do with the endo­ge­nous money approach. In con­trast to the exo­ge­nous, the endo­ge­nous con­cept reve­als deba­ted ques­ti­ons about the ori­g­ins of demand for money, its con­nec­tion with money sup­p­ly, and the poten­ti­al to gene­ra­te an exces­si­ve quan­ti­ty of money. …

Quel­le /​ Link: How exces­si­ve endo­ge­nous money sup­p­ly can con­tri­bu­te to glo­bal finan­cial crises.