Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Dow, S. C.
Right arrow Search for Related Content
Related Collections
Right arrow E51 - Money Supply; Credit; Money Multipliers
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Copyright © Cambridge Political Economy Society

research-article

Horizontalism: a critique

Sheila C. Dow*

*University of Stirling

Abstract

This article offers a critique of the horizontalist view of money that banks are passive in the face of credit demand. It is argued that banks' liquidity preference influences their responsiveness to the demand for credit. Their liquidity preference is expressed in risk assessment (understood in terms of Keynes' theory of uncertainty). It is argued that rationing in the sense of adverse changes in risk assessment occurs systematically in the downturn of the business cycle. Systematic rationing also occurs with respect to particular classes of borrowers; the focus here is on the case of small firms.

Manuscript received June 28, 1993; final version received February 18, 1994.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 Cambridge J EconHome page
A. J. Alves Jr, G. A. Dymski, and L.-F. de Paula
Banking strategy and credit expansion: a post-Keynesian approach
Camb. J. Econ., May 1, 2008; 32(3): 395 - 420.
[Abstract] [Full Text] [PDF]

Home page
 Cambridge J EconHome page
G. Bertocco
The characteristics of a monetary economy: a Keynes-Schumpeter approach
Camb. J. Econ., January 1, 2007; 31(1): 101 - 122.
[Abstract] [Full Text] [PDF]

Home page
 Cambridge J EconHome page
G. Tily
Keynes's theory of liquidity preference and his debt management and monetary policies
Camb. J. Econ., September 1, 2006; 30(5): 657 - 670.
[Abstract] [Full Text] [PDF]

Home page
 European Urban and Regional StudiesHome page
J. Corpataux and O. Crevoisier
Increased Capital Mobility/Liquidity and its Repercussions at Regional Level: Some Lessons from the Experiences of Switzerland and the United Kingdom (1975-2000)
European Urban and Regional Studies, October 1, 2005; 12(4): 315 - 334.
[Abstract] [PDF]

Home page
 Cambridge J EconHome page
G. Fontana
Hicks on monetary theory and history: money as endogenous money
Camb. J. Econ., January 1, 2004; 28(1): 73 - 88.
[Abstract] [Full Text] [PDF]


Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.