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. |
From inside the book
Results 1-3 of 64
... debt toward banks . While loans are assets for banks ( because they generate commitments to pay back initial debts with interest ) , they are a debt for firms who must pay them back from , for instance , the revenues generated from the ...
... debt ; credit can never be considered an open - market operation . In an open - market operation , the seller of the illiquid debt acquires a liquid asset , part of his or her net wealth . The purpose of money is aiding the creation of ...
... debt position , evaluated in domestic currency terms , or the ratio of the foreign debt position to GDP . That is , letting B ( t ) stand for the real foreign debt and Y ( t ) for real GDP , we find either , or Z ( t ) = Z [ B ( t ) ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
10 other sections not shown