basil moore

Reconciliation Of The Supply And Demand For Money

17 March 2014

What brings the supply and demand for money into equivalence? It is interesting that the recent Bank of England quarterly bulletin referred to an article of Peter Howells, a Post-Keynesian (also available here), although I don’t think the authors appreciate why the paper is interesting. The title of my blog post is flicked from a […]


Bank Of England On Money Creation

12 March 2014

In the natural sciences, controversies are settled in a few months, or at a time of crisis, in a year or two, but in the social so-called sciences, absurd misunderstandings can continue for sixty or a hundred years without being cleared up. – Joan Robinson, 1981 (1979), What Are The Questions And Other Essays – Further Contributions To […]


Endogeneity, Exogenous, Et Cetera

4 May 2013

Louis-Philippe Rochon and Sergio Rossi have a very interesting article Endogenous Money: The Evolutionary Versus Revolutionary Views in the Review Of Keynesian Economics. I think it was written many years back and was in an unpublished form and has been published now. It is a nice critique of views of some Post-Keynesians such as Victoria Chick and also […]


Some Aspects Of Central Bank Behaviour

24 October 2012

There was a discussion last week on a social network site on Basil Moore’s book Horizontalists And Verticalists. Someone mentioned he never knew anyone who owned a copy of the book! Lucky me. I was browsing through my copy and came across this – which I thought I should quote on central bank “defensive behaviour”. Actually, […]


Income = Expenditure!

9 October 2012

The accounting identities equating aggregate expenditures to production and of both to incomes at market prices are inescapable, no matter which variety of Keynesian or classical economics you espouse. I tell students that respect for identities is the first piece of wisdom that distinguishes economists from others who expiate on economics. The second?… Identities say nothing […]


Is Paul Krugman A Verticalist?

31 March 2012

24 years back, Basil Moore wrote a book Horizontalists And Verticalists: The Macroeconomics Of Credit Money (Cambridge University Press, 1988) which begins like this: The central message of this book is that members of the economics profession, all the way from professors to students, are currently operating with a basically incorrect paradigm of the way modern […]


National Saving

28 February 2012

Some of the previous posts went into the economic concept of Private Saving and Private Saving Net of Investment. For a closed economy these are: Private Saving = Private Investment + Budget Deficit Private Saving Net of Investment = Budget Deficit For an open economy, we add the current balance of payments to the right […]


The (Almost) Irrelevance Of Reserve Requirements

29 January 2012

Earlier this week, the Reserve Bank of India reduced banks’ reserve requirements by 50bps. It’s called Cash Reserve Ratio and the RBI reduced it from 6.00% to 5.50% with effect from the following week. The Reserve Bank of India is one of the most backward central bank in liquidity management and sometimes panics and changes […]


Post Keynesian Markup Pricing

17 January 2012

I was collecting some articles by Basil Moore and I found this table from an article In Praise Of Markets – Wage Imitation And Price Stability (unsure as to why the article is titled “praise of markets”). The article appeared in Challenge in 1982. Post Keynesians adopt Kaleckian theory of pricing. There are two sectors – fix price […]


Alfred Eichner And Federal Reserve Operating Procedures

1 January 2012

Alfred Eichner was a Post-Keynesian economist known for his text Macrodynamics of Advanced Market Economies published 3 years after his death in 1988. He died at the age of 50 in an accident and at the time he was preparing to include an analysis of open economy macroeconomics in his story of how economies work. […]