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Basil J. Moore's Horizontalists and Verticalists: an appraisal 25 years later

Author

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  • Ulrich Bindseil

    (European Central Bank)

  • Philipp J. König

    (German Institute for Economic Research)

Abstract

In 1988 Basil Moore published his book Horizontalists and Verticalists: The Macroeconomics of Credit Money, which this year celebrates its 25th birthday. We discuss this book from today's perspective, and in particular whether Moore's main assertions have been validated or rejected by the development of central bank practice and academic monetary economics. We find that the book has impressively stood the test of time and, despite part of textbook economics still insisting on the money multiplier as an explanation for the money supply, it is not much of an exaggeration to say that we have all become 'Horizontalists' in the last 25 years.

Suggested Citation

  • Ulrich Bindseil & Philipp J. König, 2013. "Basil J. Moore's Horizontalists and Verticalists: an appraisal 25 years later," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 383—390-3, October.
    • Handle: RePEc:elg:rokejn:v:1:y:2013:i:4:p383-390
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    References listed on IDEAS

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    1. Juan Barredo-Zuriarrain, 2019. "Money supply is endogenous and the Venezuelan hyperinflation is a monetary phenomenon," Post-Print halshs-03131095, HAL.
    2. Sergio Cesaratto, 2016. "La financiación inicial y final en el circuito monetario y la teoría de la demanda efectiva," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(35), pages 47-78, July-Dece.

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    More about this item

    Keywords

    monetary policy; interest rates;

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

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