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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... money supply curve as horizontal certainly conjures up the image of money endogeneity and the exogeneity of the rate of interest , much better than an upward - sloping money supply curve , which is also adopted by many mainstream ...
... money supply " curve as horizontal . 16 For instance , Palley ( 1994 , pp . 73-4 ) argues that the fully accommodative argument is an extreme position and that in the real world , the central bank retains discretionary power over the supply ...
... supply curve of money at a given interest rate . The success of the new diagram was so great that mainstream economists and even many post - Keynesians tried to show that the Kaldor - Moore curve perfectly fitted the old IS - LM model ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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