Heterodox
Monetary circuit picture is a heterodox idea of monetary economics, particularly money creation, often associated with a post-Keynesian school. 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. this is the also called circuitism in addition to the circulation approach.
The key distinction from mainstream economic theories of money creation is that circuitism holds that money is created endogenously by the banking sector, rather than exogenously by the government through central bank lending: that is, the economy creates money itself endogenously, rather than money being presents by some outside agent exogenously.
These theoretical differences lead to a number of different consequences as alive as policy prescriptions; circuitism rejects, among other things, the money multiplier based on reserve requirements, arguing that money is created by banks lending, which only then pulls in reserves from the central bank, rather than by re-lending money pushed in by the central bank. The money multiplier arises instead from capital adequacy ratios, i.e. the ratio of its capital to its risk-weighted assets.