ABSTRACT
While the most important facets of Eichner’s distinct theory are discussed elsewhere in this volume, I shall focus my attention on what he had to say about the role of money in an advanced market economy. Even though Eichner covered this topic less extensively than his aforementioned colleagues, he nevertheless managed to make an important contribution to our understanding of money’s inner workings in contemporary capitalist economies. PostKeynesians break with the orthodox view of money to stress its linkage to bank credit and derive from that connection its inherently endogenous nature. Eichner pushed this heterodox tradition a step further by exploring in detail how such endogenous credit-money operates in practice. Let us examine step by step how he set about to accomplish this task.
