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Horizontalists and Verticalists after 25 years

Author

Listed:
  • James Culham

    (Melbourne, Australia)

  • John E. King

    (La Trobe University)

Abstract

We outline the core claims of Basil Moore's book Horizontalists and Verticalists: The Macroeconomics of Credit Money and place them in their historical, contemporary and present contexts. Several theoretical problems raised by the book and recent developments in the operation of financial markets and monetary policy are discussed. We find that Moore is a key figure in the theory of endogenous money, but his version of the theory was viewed as radical and was by no means widely accepted. Recent developments have validated many of his ideas, which are now commonplace, but others remain unresolved and controversial.

Suggested Citation

  • James Culham & John E. King, 2013. "Horizontalists and Verticalists after 25 years," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(4), pages 391—405-3, October.
  • Handle: RePEc:elg:rokejn:v:1:y:2013:i:4:p391-405
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    References listed on IDEAS

    as
    1. Basil J. Moore, 1988. "The Endogenous Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(3), pages 372-385, March.
    2. Dow, Sheila C, 1996. "Horizontalism: A Critique," Cambridge Journal of Economics, Oxford University Press, vol. 20(4), pages 497-508, July.
    3. Nicholas Kaldor, 1975. "What is Wrong with Economic Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 89(3), pages 347-357.
    4. Robinson, Joan, 1970. "Quantity Theories Old and New," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 2(4), pages 504-512, November.
    5. Basil J. Moore, 1994. "The Demise of the Keynesian Multiplier: A Reply to Cottrell," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 17(1), pages 121-133, September.
    6. Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-1255, December.
    7. Basil J. Moore, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 479-487, March.
    8. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-115, March.
    9. Basil J. Moore, 1983. "Unpacking the Post Keynesian Black Box: Bank Lending and the Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 5(4), pages 537-556, July.
    10. Hyman P. Minsky, 1957. "Central Banking and Money Market Changes," The Quarterly Journal of Economics, Oxford University Press, vol. 71(2), pages 171-187.
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    13. Davidson, Paul & Weintraub, Sidney, 1973. "Money as Cause and Effect," Economic Journal, Royal Economic Society, vol. 83(332), pages 1117-1132, December.
    14. Allin Cottrell, 1994. "Endogenous Money and the Multiplier," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 17(1), pages 111-120, September.
    15. Gillian Hewitson, 1993. "An Intellectual History of Money Endogeneity Theory," Working Papers 1993.03, School of Economics, La Trobe University.
    16. Ann-Marie Meulendyke, 1988. "Can the Federal Reserve Influence Whether the Money Supply Is Endogenous? A Comment on Moore," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(3), pages 390-397, March.
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    19. Eckhard Hein & Engelbert Stockhammer (ed.), 2011. "A Modern Guide to Keynesian Macroeconomics and Economic Policies," Books, Edward Elgar Publishing, number 13962.
    20. Moore, Basil J, 1972. "Optimal Monetary Policy," Economic Journal, Royal Economic Society, vol. 82(325), pages 116-139, March.
    21. Basil J. Moore, 1984. "Contemporaneous Reserve Accounting: Can Reserves be Quantity-Constrained?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 7(1), pages 103-113, September.
    22. Kaldor, Nicholas [Lord], 1976. "Inflation and Recession in the World Economy," Economic Journal, Royal Economic Society, vol. 86(344), pages 703-714, December.
    23. Gillian Hewitson, 1993. "An Intellectual History of Money Endogeneity Theory," Working Papers 1993.03, School of Economics, La Trobe University.
    24. Cottrell, Allin, 1994. "Post-Keynesian Monetary Economics," Cambridge Journal of Economics, Oxford University Press, vol. 18(6), pages 587-605, December.
    25. Bridges, Jonathan & Thomas, Ryland, 2012. "The impact of QE on the UK economy – some supportive monetarist arithmetic," Bank of England working papers 442, Bank of England.
    26. Paul Davidson, 1967. "The Importance Of The Demand For Finance," Oxford Economic Papers, Oxford University Press, vol. 19(2), pages 245-252.
    27. Stephen Rousseas, 1989. "On the Endogeneity of Money Once More," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 474-478, March.
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    29. David I. Fand, 1988. "On the Endogenous Money Supply," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 10(3), pages 386-389, March.
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    More about this item

    Keywords

    endogenous money; exogenous interest rates; money supply; credit; money non-neutrality;

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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