Credit, Interest Rates and the Open Economy: Essays on HorizontalismLouis-Philippe Rochon, Matias Vernengo The horizontalist perspective is an extension of the post-Keynesian approach, that has hitherto focused on a theory of credit and money. This book extends horizontalism beyond its traditional boundaries and makes it consistent with the post-Keynesian theories of output and the open economy. The authors compare and contrast the horizontalist position with various orthodox and non-orthodox views on money. They argue that horizontalism is perfectly compatible with liquidity preference, credit constraints, and a flexible interest-rate mark-up, and address recent developments in banking that reinforce the validity of a horizontal schedule of credit-money. The overall intention is to place horizontalism within the current heterodox tradition as a general theory of the creation of money that is consistent with the post-Keynesian view on macroeconomic policy. Credit, Interest Rates and the Open Economy is essential reading for those who wish to expand their theoretical understanding of international financial issues and will be of great interest to those involved in macroeconomics, money and banking and radical economics. |
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... argument . The additional argument , however , is whether through time this is necessarily the case . In other words , the argument is whether an economy that increases its demand for credit will necessarily become riskier , and ...
... arguing that the central bank sets the rate of interest within some " boundaries of existing conventional financial wisdom " . 29 This argument also does not imply that central banks are in the habit of pegging short term rates for any ...
... argument relates to a jurisdiction with sufficient credit to be able to issue sovereign debt in its own currency . The argument is that the more indebted such a nation becomes , the less reliable its currency will seem to be to market ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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