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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... claims that these hoarded savings correspond to the final , observable increase in the money supply - the permanent debt of firms towards banks . The result of this analysis is that money is endogenous . In fact , because of the nature ...
... claims that " neither Kaldor nor Moore would seem to argue that literally all demand for credit is accommodated " . 21. Earlier , Lavoie ( 1993 , p . 10 ) also claimed that " to argue that the money supply is horizontal is not to argue ...
... claims on government or of claims on private banks . We know , however , from Table 10.4 that more than 90 percent of the domestic claims of the Bundesbank arise from loans to the private banks . It is thus clear that the private banks ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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