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 is hugely negative , money is still demanded and supplied so long as money is used to intermediate exchange ... supply of money is endogenous , it will also affect the real value of the total assets of the banking system as a ...
... money as an asset ( Davidson , 1972 ; Dymski , 1996 ) . Post - Keynesians , structuralists and horizontalists , share with neoclassical theory the use of supply and demand to analyse money . This raises the legitimate claim that post ...
... money ex nihilo . Banks are thus never constrained , although they may limit the supply of bank credit if they believe firms are no longer sufficiently creditworthy and unable to reimburse their loans through the generation of profits ...
Contents
Some Reflections on Endogenous Money | 11 |
Setting the Record Straight | 31 |
From the Horizontalist Revolution | 69 |
Copyright | |
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