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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... growth of final purchases and the long - term rate of interest fixed by the State . For a given long - run rate of interest , the rate of growth firms can speculate is the rate of growth of autonomous spending , D. A rise in D yields ...
... growth of productivity 2. growth of h resulting from the rise in interest rates , inducing a rise in interest income relative to wages 3. growth of the mark - up rate Since the wage rate depends upon h and r * , for a given a , it is ...
... growth ( see figure 8.2 ) . So the axes will be the rate of change of prices and the growth of output ; points on the curve , however , are now alternative long - term positions . It is not a curve along which one can envisage the ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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