ItWillNeverWork
Messy Crimbobs, fellow humans.
yep and Keen is pretty much to all intents & purposes in the Austrian camp in relation to this (i.e. his assertions that his models prove that the central bank isn't really needed)
Endogenous/circuitism theory & models eschew the need for state/central bank activity in the economy and instead posit that that commercial banks can lend (without the need for any central bank money to exist) purely because of their social role (i.e. people put trust in it because of what it is). However commercial banks don't just appear from heaven, supernaturally endowed with a social role, they only have it because the state/central banks stand squarely & solidly behind it. So the basic premise of endogenous/circuitism implicitly relies upon something that it explicitly rejects (yet very obviously & tangibly exists).
This is where I disagree with you. Keen says exactly the opposite in regards to the need for a central bank. Drastically so in fact. His proposal for the current crisis is a 'debt jubilee' funded from central bank created money - effectively creating money and giving it direct to debters instead of using QE. His opposition to neoclassical notions of exogenous money is that it leads to the belief that QE can solve the problem of liquidity, when his own models show this strategy to be inferior to direct giving of money to firms that are in debt.