Horizontalists and Verticalists The Macroeconomics of Credit Money

About the author and editors

Foreword by Ulrich Bindseil

Introduction by Marc Lavoie and Louis-Philippe Rochon

Preface

Acknowledgements

 Part I The endogeneity of credit money

1 The differences between commodity, fiat, and credit money

2 Contemporary commercial banking

3 A simple model of bank intermediation

4 The money "multiplier"

5 The endogeneity of the high-powered base

6 The U.S. money supply process

7 A causality analysis of the determinants of money growth

8 Keynes and the endogeneity of credit money

 Part II The macroeconomic implications of monetary endogeneity 

9 The determination of the nominal money supply

10 Interest rates: a real or monetary phenomenon?

11 Interest rates: an exogenous policy variable

12 Monetary change, deficit spending, and the growth of aggregate demand

13 The determination of the real money supply

14 Inflation and velocity

15 The dynamics of disequilibrium: toward a new macroeconomic paradigm

Bibliography

Index

Biography

Basil Moore was a leading Post-Keynesian Economist and a main Advocate of the Horizontalist view of endogenous money. Born in Canada, Moore pursued his studies at the University of Toronto as well as at Johns Hopkins University. In 1958, Moore started a long and distinguished career, first as a member of the faculty at Wesleyan University, and then, starting in 1993, he joined the University of Stellenbosch, in South Africa, until he passed away, in 2018.

Introduction by:

Louis-Philippe Rochon is Full Professor of Economics at Laurentian University, Canada, where he has been teaching since 2004.  

Marc Lavoie is Professor Emeritus at both the University of Ottawa and the University of Sorbonne Paris Nord (Paris 13).

“Basil Moore was the pioneer of realistic, and empirically grounded, analysis of banking. To the myth of Loanable Funds, he simply said ‘Loans Create Deposits’, 45 years before the Bank of England conceded the same point. He was a pioneer in recognising that the economy is a complex system, not an evolutionary one.  This book defined the foundations of post-Keynesian thought in endogenous money and complexity theory.” 

Steve Keen, Independent economist 

“Basil’s book is a timeless classic for young scholars, shaping generations of post-Keynesians in their understanding of endogenous money and the flaws of monetarism - which, unfortunately, still persist in mainstream economics, albeit in subtler forms. This new edition will surely renew its influence among young economists – hopefully, going beyond heterodox circles.” 

Sylvio Kappes, Assistant Professor of Macroeconomics, Federal University of Alagoas, Brazil. Co-editor, Review of Political Economy