Magical banking capital: Neo-endogenous money (NEM)

Abstract

This research emerges with internal financial constraint. How financial constraint may lead to economic recess or back. This financial constraint is different than external finance constraint, and is not due to lack of gold, etc. It explains the positive relationship between excess return in stock market (ERSM) and non-real funding or riskier credit. The matter comes under imperfect market banking. It includes subsequently banking behavior and failure of central bank policy to control individual banks under these circumstances. In addition, it presents measures to get awareness before default comes, as financial default rare and crisis in financial market comes much before that.

Keywords: Endogenous, Banking, Capital, Gambling, Business, Finance, Bank, Central Bank, Depositor Safety, Risk, World, Money, Credit

Authors’ individual contributions: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E52, G12

Received: 09.01.2020
Accepted: 13.03.2020
Published online: 30.04.2020

How to cite this paper: Talukdar, S. (2020). Magical banking capital: Neo-endogenous money (NEM). Corporate & Business Strategy Review, 1(1), 27-35. https://doi.org/10.22495/cbsrv1i1art3