What is Monetary Circuitism

Monetary Circuitism is a branch of monetary economics that seeks to explain how credit and money are created and flow between economic agents and the consequences to the macro economy due to the nature of such flows.

Monetary circuit theory is a heterodox theory of monetary economics, particularly money creation, often associated with the post-Keynesian school.[1] It holds that money is created endogenously by the banking sector, rather than exogenously by central bank lending; it is a theory of endogenous money. It is also called circuitism and the circulation approach.