Name Basil Moore | ||
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Contributions Endogenous money theory | ||
Basil Moore interview at "Alongside Night" red carpet screening
Basil J. Moore is a Canadian Post-Keynesian economist, most 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 has been the most vocal proponent of this theory, and is considered a central figure in post Keynesian economics
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Moore had a distinguished academic career at Wesleyan University in Middletown, Connecticut and is professor emeritus at the University. During his long tenure there, he maintained an association with the University of Stellenbosch in South Africa, "where he is now Professor Extraordinary of Economics."
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.