Horizontalists and Verticalists: 25 years later

Posted by Melt van Schoor on 2013-10-28

The latest issue of the Review of Keynesian Economics includes a special mini-symposium honouring the 25th anniversary of Basil Moore's book, Horizontalists and Verticalists (1988). Basil Moore is Professor Extraordinary in the Department of Economics at Stellenbosch University.

The book has been particularly influential in advocating a "horizontalist" view of monetary policy, which is that in a credit-based economy, the money supply is endogenous and determined by demand, and not by central bank supply of high-powered money, as the "verticalists" believe. In one of the mini-symposium articles, the authors' (Bindseil and König) assessment is 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."

The special issue's contents can be viewed here (one of the articles can be downloaded freely - click here).  

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BER Weekly

11 June 2018
Over the weekend, welcome news broke that the majority of public sector trade unions had signed a multi-year wage deal with the government. Unfortunately, the costs are significantly more than budgeted for by National Treasury in the February Budget. This means that the government is faced with some tough choices. The fact that GDP growth disappointed...

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