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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... implies that savings adjust to income through changes in the level of income . For the change in savings to be equal ... imply that the propensity to consume or the wage share are nil . This is justified on the basis of the reflux ...
... implies the existence of a full - employment rate of interest , as argued by Wray ( 1990 ) . According to the latter , if the rate were exogenous , what would then prevent the central bank from setting the rate at its full employment ...
... implies that the market rate of interest is below the natural rate . A low market rate of interest implies that firms will demand money for investing and that banks will loan that money , so that investment will exceed savings . An ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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