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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... borrowers on demand , at the borrowers ' initiative , up to the overdraft limit that the borrower has been assigned ( like credit cards ) . This limit represents the bank's estimate of the borrower's creditworthiness , the maximum ...
Essays on Horizontalism Louis-Philippe Rochon, Matias Vernengo. borrower . It is precisely for these reasons that banks develop client relationships with their borrowers . In Rochon ( 1999 ) , I develop a microtheory of bank lending ...
... borrowers " . This does not mean that banks are not aggressive in their lending practices , seeking out new potential borrowers . But even if they find these new borrowers , they still cannot lend without having the approval of the borrower ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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