Basil Moore

Last updated
Basil Moore
Born(1933-06-06)6 June 1933
Toronto, Canada
Died8 March 2018(2018-03-08) (aged 84)
Stellenbosch, South Africa
Nationality Canada
School or
tradition
Post-Keynesian economics
Contributions Endogenous money theory
Information at IDEAS / RePEc

Basil John Moore was a Canadian post-Keynesian economist, best known for developing and promoting endogenous money theory, particularly the proposition that the money supply curve is horizontal, rather than upward sloping, a proposition known as horizontalism . He was the most vocal proponent of this theory, [1] and is considered a central figure in post Keynesian economics [2]

Post-Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, with subsequent development influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor, Sidney Weintraub, Paul Davidson, Piero Sraffa and Jan Kregel. Historian Robert Skidelsky argues that the post-Keynesian school has remained closest to the spirit of Keynes' original work. It is a heterodox approach to economics.

Economist professional in the social science discipline of economics

An economist is a practitioner in the social science discipline of economics.

Money supply total amount of monetary assets available in an economy at a specific time


The money supply is the total value of money available in an economy at a point of time. There are several ways to define "money", but standard measures usually include currency in circulation and demand deposits. Each country’s central bank may use its own definitions of what constitutes money for its purposes.

Contents

Moore studied economics at the University of Toronto and at Johns Hopkins University. In 1958 he started a distinguished academic career at Wesleyan University in Middletown, Connecticut and became professor emeritus at the University. [3] He left in 2003 to move to South Africa where he joined the University of Stellenbosch with which he had long maintained an association and, "where he was Professor Extraordinary of Economics." [4] [5]

University of Toronto university in Toronto, Ontario, Canada

The University of Toronto is a public research university in Toronto, Ontario, Canada, located on the grounds that surround Queen's Park. It was founded by royal charter in 1827 as King's College, the first institution of higher learning in the colony of Upper Canada. Originally controlled by the Church of England, the university assumed the present name in 1850 upon becoming a secular institution. As a collegiate university, it comprises eleven colleges, which differ in character and history, each with substantial autonomy on financial and institutional affairs. It has two satellite campuses in Scarborough and Mississauga.

Johns Hopkins University Private research university in Baltimore, Maryland

Johns Hopkins University is a private research university in Baltimore, Maryland. Founded in 1876, the university was named for its first benefactor, the American entrepreneur, abolitionist, and philanthropist Johns Hopkins. His $7 million bequest —of which half financed the establishment of Johns Hopkins Hospital—was the largest philanthropic gift in the history of the United States up to that time. Daniel Coit Gilman, who was inaugurated as the institution's first president on February 22, 1876, led the university to revolutionize higher education in the U.S. by integrating teaching and research. Adopting the concept of a graduate school from Germany's ancient Heidelberg University, Johns Hopkins University is considered the first research university in the United States. Over the course of several decades, the university has led all U.S. universities in annual research and development expenditures. In fiscal year 2016, Johns Hopkins spent nearly $2.5 billion on research.

Wesleyan University private liberal arts college in Middletown, Connecticut

Wesleyan University is a private liberal arts college in Middletown, Connecticut. It is a baccalaureate college that emphasizes undergraduate instruction in the arts and sciences, but also grants research master's and doctoral degrees in many academic disciplines.

Theory

Moore emphasizes the mechanics of credit creation, particularly lines of credit extended by banks to large corporations on the money supply. He argues that the ability of commercial banks to extend credit is limited only by demand for money by creditworthy borrowers, as central banks are compelled to act to ensure there is always a sufficient supply of money for demand to be met (at their target interest rate).

Moore contrasted his own "horizontalist" view of the money supply, shared by some post-Keynesian economists, with a more mainstream "structuralist" view of the economy, in which the quantity of money is supply- constrained.

Selected bibliography

International Standard Book Number Unique numeric book identifier

The International Standard Book Number (ISBN) is a numeric commercial book identifier which is intended to be unique. Publishers purchase ISBNs from an affiliate of the International ISBN Agency.

Related Research Articles

James Tobin American economist

James Tobin was an American economist who served on the Council of Economic Advisers and the Board of Governors of the Federal Reserve System, and taught at Harvard and Yale Universities. He developed the ideas of Keynesian economics, and advocated government intervention to stabilize output and avoid recessions. His academic work included pioneering contributions to the study of investment, monetary and fiscal policy and financial markets. He also proposed an econometric model for censored dependent variables, the well-known Tobit model. Along with fellow Neo-Keynesian economist James Meade in 1977, Tobin proposed nominal GDP targeting as a monetary policy rule in 1980. Tobin received the Nobel Memorial Prize in Economic Sciences in 1981 for "creative and extensive work on the analysis of financial markets and their relations to expenditure decisions, employment, production and prices."

Macroeconomics branch of economics that studies aggregated indicators

Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.

New Keynesian economics is a school of contemporary macroeconomics that strives to provide microeconomic foundations for Keynesian economics. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of new classical macroeconomics.

John Hicks British economist

Sir John Richard Hicks was a British economist. He was considered one of the most important and influential economists of the twentieth century. The most familiar of his many contributions in the field of economics were his statement of consumer demand theory in microeconomics, and the IS/LM model (1937), which summarised a Keynesian view of macroeconomics. His book Value and Capital (1939) significantly extended general-equilibrium and value theory. The compensated demand function is named the Hicksian demand function in memory of him.

John B. Taylor Mary and Robert Raymond Professor of Economics at Stanford University

John Brian Taylor is the Mary and Robert Raymond Professor of Economics at Stanford University, and the George P. Shultz Senior Fellow in Economics at Stanford University's Hoover Institution.

Horizontalism is an approach to money creation theory pioneered by Basil Moore which states that private bank reserves are not managed by central banks. Instead reserves will be provided on demand at the bank rate set by the central bank. This inverts the mainstream textbook money multiplier relationship between deposits and loans since loans are said to cause deposits which in turn cause reserves.

David Ernest William Laidler is an economist who has been one of the foremost scholars of monetarism. He published major economics journal articles on the topic in the late 1960s and early 1970s. His book, The Demand for Money, was published in four editions from 1969 through 1993, initially setting forth the stability of the relationship between income and the demand for money and later taking into consideration the effects of legal, technological, and institutional changes on the demand for money. The book has been translated into French, Spanish, Italian, Japanese, and Chinese.

The Journal of Political Economy is a bimonthly peer-reviewed academic journal published by the University of Chicago Press. It covers both theoretical and empirical economics. It was established in 1892 by James Laurence Laughlin. In January 2020, the journal will move to a monthly publication schedule.

Mihir Rakshit Indian economist

Mihir Rakshit is a reputed Indian economist, known for his work on fiscal, monetary and other policy, especially issues that concern developing economies. Originally from Chittagong, which is now in Bangladesh, he did his graduation from Presidency College, Calcutta and post-graduation from the University of Calcutta. He taught at the departments of Economics of The University of Calcutta, The University of Burdwan, Presidency College Calcutta, and Indian Statistical Institute Calcutta, as faculty. He also taught at Delhi School of Economics and Erasmus University Rotterdam, as visiting faculty. He served the Reserve Bank of India for two terms as a member of its central board of Directors. He was Editor-in-chief of the open access quarterly journal Money and Finance published by ICRA Limited from 1997 to July 2016.

Paul Davidson is an American macroeconomist who has been one of the leading spokesmen of the American branch of the post-Keynesian school in economics. He is a prolific writer and has actively intervened in important debates on economic policy from a position that is very critical of mainstream economics.

History of macroeconomic thought

Macroeconomic theory has its origins in the study of business cycles and monetary theory. In general, early theorists believed monetary factors could not affect real factors such as real output. John Maynard Keynes attacked some of these "classical" theories and produced a general theory that described the whole economy in terms of aggregates rather than individual, microeconomic parts. Attempting to explain unemployment and recessions, he noticed the tendency for people and businesses to hoard cash and avoid investment during a recession. He argued that this invalidated the assumptions of classical economists who thought that markets always clear, leaving no surplus of goods and no willing labor left idle.

Athanasios "Tom" Asimakopulos was a Canadian economist, who was the "William Dow Professor of Political Economy" in the Department of Economics, McGill University, Montreal, Quebec, Canada. His monograph, Keynes's General Theory and Accumulation, reviews important areas of Keynes's General Theory and the theories of accumulation of two of his most distinguished followers, Roy Harrod and Joan Robinson.

Thomas Palley is an American economist who has served as the chief economist for the US–China Economic and Security Review Commission. He is currently Schwartz Economic Growth Fellow at the New America Foundation.

Endogenous money is an economy’s supply of money that is determined endogenously—that is, as a result of the interactions of other economic variables, rather than exogenously (autonomously) by an external authority such as a central bank.

Robert Wayne Clower was an American economist. He is credited with having largely created the field of stock-flow analysis in economics and with seminal works on the microfoundations of monetary theory and macroeconomics.

Peter Howells is Professor Emeritus of Monetary Economics at the Bristol Business school at the University of the West of England.

Disequilibrium macroeconomics is a tradition of research centered on the role of disequilibrium in economics. This approach is also known as non-Walrasian theory, equilibrium with rationing, the non-market clearing approach, and non-tâtonnement theory. Early work in the area was done by Don Patinkin, Robert W. Clower, and Axel Leijonhufvud. Their work was formalized into general disequilibrium models, which were very influential in the 1970s. American economists had mostly abandoned these models by the late 1970s, but French economists continued work in the tradition and developed fixprice models.

L. Randall Wray American economist associated with Modern Monetary Theory

Larry Randall Wray is a professor of Economics at Bard College and Senior Scholar at the Levy Economics Institute. Previously, he was a professor at the University of Missouri–Kansas City in Kansas City, Missouri, USA, whose faculty he joined in August 1999. Before UMKC, he served as a visiting professor at the University of Rome, Italy, the University of Paris, France, and the UNAM, in Mexico City. From 1994 to 1995 he was a Fulbright Scholar at the University of Bologna. From 2015 he is a Visiting professor at the University of Bergamo.

In macroeconomics, chartalism is a theory of money that argues that money originated with states' attempts to direct economic activity rather than as a spontaneous solution to the problems with barter or as a means with which to tokenize debt, and that fiat currency has value in exchange because of sovereign power to levy taxes on economic activity payable in the currency they issue.

References

  1. A history of post Keynesian economics since 1936, by J. E. King, Edward Elgar Publishing, 2003, p. 175.
  2. Rochon, LP (2006). in Essays in Honour of Basil J. Moore and Macroeconomic Theory: Essays in Honour of ... Edward Elgar. pp. 170–186. Retrieved 16 March 2015.
  3. The Macroeconomics of Credit Money Archived April 14, 2011, at the Wayback Machine
  4. Complexity, Endogenous Money And Macroeconomic Theory: Essays in Honour Of Basil J. Moore by Mark Setterfield, (ed.), Edward Elgar Publishing, 2006, p.1.
  5. "Economics – Wesleyan University". Archived from the original on 2008-05-13. Retrieved 2011-03-20.
Stellenbosch University University in South Africa

Stellenbosch University is a public research university situated in Stellenbosch, a town in the Western Cape province of South Africa. Stellenbosch is jointly the oldest university in South Africa and the oldest extant university in Sub-Saharan Africa alongside the University of Cape Town which received full university status on the same day in 1918. Stellenbosch University designed and manufactured Africa's first microsatellite, SUNSAT, launched in 1999.

Steve Keen Australian economist

Steve Keen is an Australian economist and author. He considers himself a post-Keynesian, criticising neoclassical economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen's thinking about economics include John Maynard Keynes, Karl Marx, Hyman Minsky, Piero Sraffa, Augusto Graziani, Joseph Alois Schumpeter, Thorstein Veblen, and François Quesnay. Hyman Minsky's financial instability hypothesis forms the main basis of his major contribution to economics which mainly concentrates on mathematical modelling and simulation of financial instability. He is a notable critic of the Australian property bubble, as he sees it.