Monetary Theory and Practice: The UK Experience

adjustment authorities bank deposits bank lending Bank of England banking system behaviour borrowing broad money capital cash cent central bank changes in interest clearing banks coefficient of determination coefficients competitive debt sales demand for bank demand for money demand-for-money function dependent variable determination domestic monetary econometric economic effect elasticity equations estimated example exchange rate exchange-rate exogenous expected expenditures external financial assets financial markets fluctuations forecast funds implies increase inflation interest-elasticity interest-rate Keynesian lags liability management liquidity M₁ monetarists monetary aggregates monetary base control monetary developments monetary growth monetary policy money balances money holdings money incomes money multiplier money stock money supply movements nominal interest rates non-bank offset paper payments period portfolio predictable private sector PSBR public-sector debt rate of growth relationship relative reserve ratio response rise shift short-term stable statistical stock of money structural changes transmission mechanism variations yield