Basil John Moore was a Canadian

post-Keynesian 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 ...

economist An economist is a professional and practitioner in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy. Within this field there are ...

, best known for developing and promoting endogenous money theory, particularly the proposition that the

money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circul ...

curve is ''horizontal,'' rather than upward sloping, a proposition known as

horizontalism 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 inv ...

. He was the most vocal proponent of this theory, and is considered a central figure in post Keynesian economics Moore studied economics at the

University of Toronto The University of Toronto (UToronto or U of T) is a public university, public research university in Toronto, Ontario, Canada, located on the grounds that surround Queen's Park (Toronto), Queen's Park. It was founded by royal charter in 1827 ...

and at

Johns Hopkins University Johns Hopkins University (Johns Hopkins, Hopkins, or JHU) is a private research university in Baltimore, Maryland. Founded in 1876, Johns Hopkins is the oldest research university in the United States and in the western hemisphere. It consi ...

. In 1958 he started a distinguished academic career at

Wesleyan University Wesleyan University ( ) is a private liberal arts university in Middletown, Connecticut. Founded in 1831 as a men's college under the auspices of the Methodist Episcopal Church and with the support of prominent residents of Middletown, the col ...

in Middletown, Connecticut and became professor emeritus at the University. He left in 2003 to move to South Africa where he joined the

University of Stellenbosch Stellenbosch University ( af, Universiteit Stellenbosch) is a public research university situated in Stellenbosch, a town in the Western Cape province of South Africa. Stellenbosch is the oldest university in South Africa and the oldest extant ...

with which he had long maintained an association and, "where he was Professor Extraordinary of Economics."

Theory

Moore emphasizes the mechanics of

credit creation Money creation, or money issuance, is the process by which the money supply of a country, or of an economic or monetary region,Such as the Eurozone or ECCAS is increased. In most modern economies, money creation is controlled by the central bank ...

, particularly

lines of credit A line of credit is a Credit (finance), credit facility extended by a bank or other financial institution to a government, business or Personal finance, individual customer that enables the customer to draw on the facility when the customer nee ...

extended by banks to large corporations on the

. 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

* ''Shaking the Invisible Hand: Complexity, Endogenous Money and Exogenous Interest Rates'', 2006, * ''Horizontalists and Verticalists: The Macroeconomics of Credit Money,'' 1988, * ''The Endogeneity of Money: A Comment,'' Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pp. 291–94, August, 1988. * ''Inflation and financial deepening,'' Journal of Development Economics, Elsevier, vol. 20(1), pp. 125–133, 1986. * ''Equities, Capital Gains, and the Role of Finance in Accumulation,'' American Economic Review, American Economic Association, vol. 65(5), pp. 872–86, December, 1975. * ''The Pasinetti Paradox Revisited,'' Review of Economic Studies, Wiley Blackwell, vol. 41(2), pp. 297–99, April, 1974. * ''Some Macroeconomic Consequences of Corporate Equities,'' Canadian Journal of Economics, Canadian Economics Association, vol. 6(4), pp. 529–44, November, 1973. * ''Optimal Monetary Policy,'' Economic Journal, Royal Economic Society, vol. 82(325), pp. 116–39, March, 1972. * ''Asset Management and Monetary Policy: Discussion,'' Journal of Finance, American Finance Association, vol. 24(2), pp. 242–44, May, 1969.

References

External links

Basil Moore
– homepage at

Stellenbosch University Stellenbosch University ( af, Universiteit Stellenbosch) is a public research university situated in Stellenbosch, a town in the Western Cape province of South Africa. Stellenbosch is the oldest university in South Africa and the oldest extant ...

Debates in endogenous money: Basil Moore & Sheila Dow
by

Steve Keen Steve Keen (born 28 March 1953) 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 ...

Basil J. Moore’s Horizontalists and Verticalists Ulrich. Bindseil and Philipp J. König
{{DEFAULTSORT:Moore, Basil 1933 births 2018 deaths Canadian economists Post-Keynesian economists Wesleyan University faculty