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
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... Liability Management It has been suggested that liability management and horizontalism are incompatible . For instance , Pollin ( 1991 , p . 371 ) has wondered why banks would engage persistently in liability management if the central ...
... control and consequently dependent upon it as lender of last resort " . But liability management must also be seen as a permanent practice of banks to reduce their current reserves in the face of a given amount of aggregate deposits ...
... liabilities with higher requirements . The liability management solution is a risky one , however , and must therefore be properly understood . Ultimately , most post - Keynesians claim that liability management allows banks to increase ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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