<p>There are many such models. A prime example would be the <a href="https://en.wikipedia.org/wiki/IS%E2%80%93LM_model" rel="nofollow noreferrer">IS-LM</a> <a href="https://en.wikipedia.org/wiki/AD%E2%80%93AS_model" rel="nofollow noreferrer">AS-AD</a> model where money supply is controlled by central bank and money can be created at will from nothing (I suppose that is what you mean by 'ex nihilo').</p>
<p>This model is one of the 'workhorse' models of modern macroeconomics so you can find its exposition in any textbook. If you want an introductory treatment then Blanchard et al Macroeconomics: a European Perspective offers one. If you want graduate treatment Romer Advanced Macroeconomics is good source. Or if you specifically want a paper not a book then you can see the <a href="https://www.tandfonline.com/doi/abs/10.1080/01603477.1980.11489209?journalCode=mpke20" rel="nofollow noreferrer">Hicks, J. (1980). IS-LM: an explanation. Journal of Post Keynesian Economics, 3(2), 139-154</a>.</p>

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2020-09-09T15:15:40.657Z
2020-09-09T15:15:40.657Z
1muflon1
<p>is there any macro model/paper introducing money creation (ex nihilo money creation) ? I would be very interested in reading them.</p>

<macroeconomics><banking><money-supply><money>
Model with money creation
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# Model with money creation

(Asked by: username_0 on 2020-09-09)

is there any macro model/paper introducing money creation (ex nihilo money creation) ? I would be very interested in reading them.

**Tags:** macroeconomics, banking, money-supply, money

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## 1 answers

### Answer by username_1 on 2020-09-09. Score: 2

There are many such models. A prime example would be the [IS-LM](https://en.wikipedia.org/wiki/IS%E2%80%93LM_model) [AS-AD](https://en.wikipedia.org/wiki/AD%E2%80%93AS_model) model where money supply is controlled by central bank and money can be created at will from nothing (I suppose that is what you mean by 'ex nihilo').

This model is one of the 'workhorse' models of modern macroeconomics so you can find its exposition in any textbook. If you want an introductory treatment then Blanchard et al Macroeconomics: a European Perspective offers one. If you want graduate treatment Romer Advanced Macroeconomics is good source. Or if you specifically want a paper not a book then you can see the [Hicks, J. (1980). IS-LM: an explanation. Journal of Post Keynesian Economics, 3(2), 139-154](https://www.tandfonline.com/doi/abs/10.1080/01603477.1980.11489209?journalCode=mpke20).


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