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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... investment goods ( equation 1.3 ) . Income is also defined as comprising only consumption expenditure and saving ( equation 1.4a ) . By equating ( 1.3 ) and ( 1.4a ) , we see that the logical implication is clear . Saving , defined as ...
... investment expenditure under an accounting system of double - entry bookkeeping . Saving ex post necessarily rises or falls pari passu with investment spending ( note that ex post includes the present as well as the past ) . In all ...
... invested . Under such conditions saving takes precedence over investment . There can be no investment without first an act of saving . Saving can then be regarded as " enabling " or " causing " investment . But even in a barter world ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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