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Monetary Fiasco: Is there a Culprit?
Author(s) -
CONGDON TIM
Publication year - 1982
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.1982.tb01439.x
Subject(s) - economics , monetary economics , criticism , money supply , demand deposit , government (linguistics) , money creation , endogenous money , monetary policy , market economy , business , central bank , law , linguistics , philosophy , political science
Criticism of the Bank of England over the excess supply of money neglects its fundamental role in supplying money to the financial institutions to ensure the efficiency of the capitalist economy. Rather than reduce the supply of money directly, the Government has correctly attempted to reduce demand for it by using high interest rates to raise its price.