I am trying to wrap my head around Woodford's "Interest and Prices" so I have a question regarding the source of the endogeneity of the money supply in his models.

The Post Keynesian view is that loans create deposits which (through full accommodation of the central bank) create reserves, that is both the monetary base and bank created credit are endogenous variables.

Now, in New Keynesian models, in particular those using the Neo-Wicksellian framework (referencing Wicksell's cumulative process), the supply of money is also endogenous. As far as I understand it the stock of money plays no particular role but changes in it are captured on its effect on prices (an implicit quantity equation so to say). My question relates to the source of the endogeneity. Woodford acknowledges the ability of banks to create book money by making loans but does he also subscribe to the view that this then determines the stock of reserves? Simply stated, are Post Keynesian and New Keynesian views on the endogeneity of money, ignoring monetary neutrality, the same?

Thanks in advance



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