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Glite Dictionary
🤝 Equal participation 🏦 Money supply theory
horizontalism

horizontalism

9.9
Banks create money when people borrow at the current interest rate
  • noun
  • /ˌhɔːrɪˈzɒntəlɪzəm/
  • Specialized
translation icon : horizontalismo
  • According to horizontalism, banks create money in response to borrowers' needs at prevailing interest rates.

Examples

  • Debates between horizontalism and verticalism shape modern discussions about central banking.

  • The economist explained horizontalism as a key idea in post-Keynesian monetary theory.

  • The concept of horizontalism is gaining traction in economic discussions.

  • Many economists debate the merits of horizontalism versus traditional monetary policies.

  • The economist explained horizontalism as a theory where banks adapt their money supply based on demand for loans.

  • According to horizontalism, banks adjust their lending to match borrowers' needs and the current interest rates.

  • Many economists support horizontalism as an influential approach to understanding how banks respond to market demands.

Surface Forms

horizontalism singular
horizontalisms plural

Morphology

horizontalism = horizontal (opaque) = horizon + al + ism

Morphologically it is the regular attachment of '-ism' to 'horizontal' to form a noun meaning a doctrine or theory.

Etymology

The word horizontalism comes from horizontal, which means 'side to side' or 'flat'. In money theory it gives a picture of a flat line at a set interest rate, where banks create money as people borrow, so the money supply moves sideways with demand.