Editorial to the special issue

where his doctoral researchon the impact of monetary policy on bank profit in Canadawas supervised by Fritz Machlup.He joined the faculty at Wesleyan University in Connecticut in the late 1950s, spending more than four decades of his career at Wesleyan before accepting a position as Professor Extraordinary of Economics at the University of Stellenbosch in South Africa in 2003.A monetary macroeconomist who increasingly identified with post-Keynesian economics as his career progressed, Moore is renowned as an advocate of endogenous money theory (EMT) and, in particular, the variant of EMT that he dubbed 'horizontalism.'The core tenets of his thinking on endogenous money and its macroeconomic consequences are found in a series of articles and books published during the second half of his career.Many of these are well known in both academic and policy-making circlesnone more so than Horizontalists and Verticalists: The Macroeconomics of Credit Money (Moore 1988), which is, by popular repute, his magnum opus (see, for example, Bindseil/König 2013).There exists ever-more widespread agreement among macroeconomists that the quantity of money in circulation is endogenous, determined by private decision-making within the economy rather than being imposed upon the economy from without.For some, acceptance of this principle is essentially a matter of empirics.In modern New Keynesian macroeconomics, for example, it is regarded as true as a matter of observation that central banks use the interest rate as the primary tool for conducting monetary policy.As 'price-makers' they therefore become 'quantity-takers,' so that the quantity of money in circulation is rendered an endogenous residual.To the extent that this account has theoretical foundations, they lie in the notion that if, as a practical matter, the monetary sector is more volatile than the real sector, then using the interest rate to conduct monetary policy interventions is demonstrably the best way of achieving short-term aggregate income stabilization (Poole 1970). 1 On this (New Keynesian) account, the endogeneity of money is a choice on the part of central banks (albeit one conditioned by the relative volatilities of the real and nominal sectors).Central banks could, in principle, revert to conducting monetary policy intervention through the manipulation of monetary aggregates.According to post-Keynesians, however, this last claim is false.In the post-Keynesian EMT championed by Moore, the endogeneity of money arises as a matter of necessity, not as a matter of choice.Central to EMT is an institution that is missing from the mainstream New Keynesian account of endogenous money: the commercial bank.According to EMT, commercial banks are quintessentially retailers of credit, making loans on demand to creditworthy borrowers.The retail price of this credit is set by commercial banks themselves, as a 1.For a more detailed account and critique of this thinking, see Fontana et al. (2020: 341-343) in this issue.

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