Money market strategy or monetary aggregates - analysis of recent federal reserve policy
Citation:
JL Lucia, 'Money market strategy or monetary aggregates - analysis of recent federal reserve policy', Economic and Social Research Institute, Economic and Social Review, Vol.5 (Issue 1), 1973, 1973, pp31-45Download Item:
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Abstract:
In recent years the critics o f monetary policy have placed increasing emphasis on the need to control monetary aggregates. This emphasis has resulted from what appears to be a bias on the part of the Federal Reserve in favour ofreducing strains in the money-market which in turn causes the Central Bank to lose control over an important aggregate such as the money supply. If the Federal Reserve attempts, say, to meet an expanded demand for bank credit by increasing bank reserves, it reduces pressure on interest rates (and hence the money-market) but may lead to loss of control over money.
Author: Lucia, JL
Publisher:
Economic & Social StudiesType of material:
Journal ArticleCollections:
Series/Report no:
Economic and Social ReviewVol.5 (Issue 1), 1973
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0012-9984Licences: