Monetary Theory and Practice: The UK Experience

adjustment approach bank deposits bank lending Bank of England banking system behaviour borrowing broad money capital cash central bank clearing banks coefficient of determination coefficients debt sales definition demand for money demand-for-money function determined disequilibrium money econometric economic effect empirical equations estimated example exchange rate exchange-rate exogenous expected expenditures financial assets financial markets fiscal policy fluctuations forecast funds high-powered money 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 incomes nominal interest rates offset period portfolio private sector PSBR public-sector debt rate of growth relationship relative reserve flows reserve ratio response rise short-term stable statistical sterling M3 stock of money supply shocks supply-side shocks transmission mechanism variable variations yield