On exogenous money and bank behavior: The Pandora’s box kept shut in Keynes’ theory of liquidity preference?

Debates on endogenous versus exogenous money are a recurrent theme in monetary theory. Given that Maynard Keynes and Milton Friedman are probably the two most influential monetary thinkers of the twentieth century, it is of some interest that Desai identifies an apparent similarity of exogenous money views underlying both Keynes’ General Theory as well as the monetarist theory of Friedman: “The banking system is a passive agent in this view and given the cash base is always fully loaned up” (Desai 1989: 149).