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MONETARY POLICY IN ECONOMIES WITH LITTLE OR NO MONEY
Author(s) -
McCallum Bennett T.
Publication year - 2004
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2004.00213.x
Subject(s) - economics , monetary policy , monetary economics , currency , scope (computer science) , commodity , settlement (finance) , money market , central bank , international economics , macroeconomics , market economy , finance , payment , computer science , programming language
. (1) Medium‐of‐exchange money will not entirely disappear in the foreseeable future. (2) In economies with no currency but settlement balances at the central bank, policy can be conducted much as at present by activist adjustment of overnight interest rates. (3) In economies without any money there can be no monetary policy. Liabilities of some official entity might serve as the medium of account, but there could be rivals. (4) A broad commodity‐bundle monetary standard could be viable, even with a redemption medium, and there is scope for quantitative analysis of such systems. (5) The number of distinct national currencies may decline sharply.