Abstract

The paper aims to introduce ethical remarks into the monetary circuit (or monetary theory of production)
approach in order to study the mechanism of money creation when banks discriminate production on an ethical
plane. By the micro-foundation of the banks’ and firms’ behaviour, it will be shown that the ethical
discrimination of firms by banks is implemented by the differentiation of the mark-ups on the loan rate and how
this discrimination leads the system to create different credit markets according to the capacity (or willingness)
of firms to satisfy (or not) the ethical claims of the banks.

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