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Article in Journal ()

Horizontalism: A critique

Citation
Dow S (1996) Horizontalism: A critique, Cambridge Journal of Economics, 20 (4), pp. 497-508.

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.

StatusPublished
AuthorsDow Sheila
Publication date07/1996
Date accepted by journal18/02/1994
URLhttp://cje.oxfordjournals.org/content/20/4/497.short
PublisherOxford University Press
ISSN 0309-166X
LanguageEnglish

Journal
Cambridge Journal of Economics: Volume 20, Issue 4 (JUL 1996)

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