Abstract:

Post Keynesian economics is actually macroeconomics in a world of uncertainty and endogenous money. Post Keynesians posit that money supply in a market oriented production economy is endogenously determined (rather than exogenous as claimed by Monetarists). The purpose of this study is to estimate money supply equation and to determine endojenity of money supply for the scope of developed countries which is defined as G7. In this context, using annual data an empirical model has been generated by panel data analysis for the period 1980-2014. Firstly, cross-sectionally dependence of the variables were investigated using the LM tests, and then existence of unit root were examined by the first and second generation unit root tests. After the existence of the cointegration relationship between the series proved by using the Westurlund ECM cointegration test panel ARDL was applied. According to the empirical results, for developed countries has found that money supply is endogenous as prop

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