Abstract
Control of monetary base, together with compulsory reserves requirements, is the main instrument by which, in most countries, the central bank manages the volume of bank credit and bank deposits and, therefrom, the liquidity of the economy and the level of interest rates.1 Indeed, the traditional instruments of monetary policy (open-market operations, rediscount policy, control of banks' net indebtedness with the foreign sector, different ways of financing the Treasury, and so forth) are all means by which the central bank influences the amount of base money. As a matter of experience, however, the ratio of changes in the amount of credit to changes in the amount of monetary base or bank reserves
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
