- Page 4 and 5: Monetary Economics: Policy and its
- Page 6 and 7: Contents List of boxes, tables and
- Page 8 and 9: 8 The Transmission Mechanism of Mon
- Page 10 and 11: LIST OF BOXES, FIGURES AND TABLES i
- Page 12 and 13: Preface PREFACE XI We have taught m
- Page 14 and 15: 1 THE MEANING OF MONEY 1 The Meanin
- Page 16 and 17: question of the ‘neutrality’ of
- Page 18 and 19: THE MEANING OF MONEY 5 and so we ha
- Page 20 and 21: THE MEANING OF MONEY 7 issuing the
- Page 22 and 23: THE MEANING OF MONEY 9 resources’
- Page 24 and 25: THE MEANING OF MONEY 11 authorities
- Page 26 and 27: THE MEANING OF MONEY 13 in the econ
- Page 28 and 29: maximum impact on the rate of infla
- Page 30 and 31: THE MEANING OF MONEY 17 Firstly, th
- Page 32 and 33: we must be able to analyse economic
- Page 34 and 35: THE MEANING OF MONEY 21 trustworthi
- Page 36 and 37: possibility of inflation, were in f
- Page 38 and 39: 2. What comprises the wealth of: (a
- Page 40 and 41: 2 DEFINITIONS OF MONEY IN ECONOMICS
- Page 42 and 43: DEFINITIONS OF MONEY IN ECONOMICS 2
- Page 44 and 45: Pause for thought 2.2: In the absen
- Page 46 and 47: Fourthly, in the sort of world abov
- Page 48 and 49: tion costs in an economy (see Secti
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ing in the theory that inflation is
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DEFINITIONS OF MONEY IN ECONOMICS 4
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May 1987 Sept. 1979 M3 - NBPS £ ba
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according to the extent to which th
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Key concepts used in this chapter Q
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3 The Money Supply Process THE MONE
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THE MONEY SUPPLY PROCESS 51 deposit
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THE MONEY SUPPLY PROCESS 53 transfe
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THE MONEY SUPPLY PROCESS 55 Table 3
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The latter is certainly a powerful
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THE MONEY SUPPLY PROCESS 59 In an u
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THE MONEY SUPPLY PROCESS 61 When it
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THE MONEY SUPPLY PROCESS 63 This is
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change in the stock of bank loans
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In fact, even though each approach
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THE MONEY SUPPLY PROCESS 69 ence of
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Key concepts used in this chapter m
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4 4.1 Introduction MONEY SUPPLY AND
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ly between 1980 and 1985 — it has
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Box 4.1: Using gilt-repos to raise
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MONEY SUPPLY AND CONTROL IN THE UK
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that the banks genuinely feared col
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1994). The survey by Borio (1997) s
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MONEY SUPPLY AND CONTROL IN THE UK
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MONEY SUPPLY AND CONTROL IN THE UK
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In the United Kingdom, money is end
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MONEY SUPPLY AND CONTROL IN THE UK
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ly from a rejection of the volatili
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5 5.1 Introduction THE THEORY OF TH
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THE THEORY OF THE DEMAND FOR MONEY
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ferent from one economy to another)
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The replacement of T by y in the Qu
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Thus, let giving us: and: THE THEOR
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Pause for thought 5.3: THE THEORY O
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At any time, the current rate would
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THE THEORY OF THE DEMAND FOR MONEY
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THE THEORY OF THE DEMAND FOR MONEY
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THE THEORY OF THE DEMAND FOR MONEY
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The next problem is to find the num
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THE THEORY OF THE DEMAND FOR MONEY
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isk. As the proportion of bonds in
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(increasing the degree of risk of t
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of their wealth in a more liquid fo
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THE THEORY OF THE DEMAND FOR MONEY
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THE THEORY OF THE DEMAND FOR MONEY
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to the acceptance of a stable deman
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6 6.1 Introduction TESTING THE DEMA
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• The expected change in the rate
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of these in demand for money functi
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Pause for thought 6.2: TESTING THE
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TESTING THE DEMAND FOR MONEY 139 mo
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(f) Independent variables may be co
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instability is compatible with long
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(that is, whether the price elastic
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TESTING THE DEMAND FOR MONEY 147 (i
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The problem showed up in ways other
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a deterministic trend) and define P
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TESTING THE DEMAND FOR MONEY 153 la
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TESTING THE DEMAND FOR MONEY 155 Ag
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(iii) currency substitution TESTING
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TESTING THE DEMAND FOR MONEY 159 (1
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TESTING THE DEMAND FOR MONEY 161 Th
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such changes may cause discrete jum
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(b3) Transactions vs income velocit
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and econometrics is a somewhat trou
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educed-form equations partial adjus
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7 7.1 Introduction THE TRANSMISSION
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THE TRANSMISSION MECHANISM OF MONET
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posable income of all households, b
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usiness services, and those parts o
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There are several different time la
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the amount required to return us to
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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Pause for thought 7.8: THE TRANSMIS
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THE TRANSMISSION MECHANISM OF MONET
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is the price of money; whereas mone
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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in the demand for loans, lenders ma
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icy by following a monetary rule (s
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8 8.1 Introduction THE TRANSMISSION
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Classical model, which assumes forw
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THE TRANSMISSION MECHANISM OF MONET
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THE TRANSMISSION MECHANISM OF MONET
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for some time to expect the previou
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tion of rational expectations could
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THE TRANSMISSION MECHANISM OF MONET
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One set of these theories, sticky p
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this assumes that price adjustment
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unanticipated monetary shocks had r
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THE TRANSMISSION MECHANISM OF MONET
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market agents, they revise downward
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THE TRANSMISSION MECHANISM OF MONET
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changes in the voting behaviour of
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Secondly, the existence of a correl
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THE TRANSMISSION MECHANISM OF MONET
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Lohman’s second category of a del
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adaptive (backward-looking) expecta
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9 9.1 Introduction The Theory of Mo
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We must also accept that long-run i
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economy; (b) the target variables a
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people have defended M0 as an inter
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THE THEORY OF MONETARY POLICY 251 v
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THE THEORY OF MONETARY POLICY 253 T
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hypothesis itself, there have been
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THE THEORY OF MONETARY POLICY 257 H
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9.5 Intermediate versus final targe
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THE THEORY OF MONETARY POLICY 261 d
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THE THEORY OF MONETARY POLICY 263 w
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since they are based on a forecast
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THE THEORY OF MONETARY POLICY 267 a
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THE THEORY OF MONETARY POLICY 269 d
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do that, then we would do better to
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5. Explain how the rational expecta
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10 10.1 Introduction THE OPEN ECONO
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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these policies are transmitted thro
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actions costs are negligible, and i
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· domestic interest rate · the ex
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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domestic monetary policies of other
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THE OPEN ECONOMY AND MONETARY POLIC
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THE OPEN ECONOMY AND MONETARY POLIC
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agreements among economists, the ma
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nomic policy formulation, and the n
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goods markets. Of course, if such p
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Key concepts used in this chapter t
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11 11.1 Introduction THE EVOLUTION
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THE EVOLUTION OF MONETARY POLICY IN
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y the need to achieve a balanced ba
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a way round it, and the authorities
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• the Bank to be able to call for
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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example). Since balance sheets must
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THE EVOLUTION OF MONETARY POLICY IN
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Box 11.1: Capital adequacy ratios a
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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THE EVOLUTION OF MONETARY POLICY IN
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6. What features of the UK’s mone
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12 12.1 Introduction THE MONETARY A
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THE MONETARY AUTHORITIES AND FINANC
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Central banks, and the Bank of Engl
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Pause for thought 12.1: THE MONETAR
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THE MONETARY AUTHORITIES AND FINANC
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Could it be then that the long pric
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THE MONETARY AUTHORITIES AND FINANC
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THE MONETARY AUTHORITIES AND FINANC
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turn. On the other hand, the wideni
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THE MONETARY AUTHORITIES AND FINANC
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cial markets may be capable of yiel
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13 13.1 Introduction MONETARY POLIC
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than one currency. However, the que
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Pause for thought 13.2: MONETARY PO
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idly across the EU in relation to G
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incompatible. What more recent evid
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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statutorily protected since the ESC
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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cent could well involve falling pri
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deviations from it are not unusual
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MONETARY POLICY IN THE EUROPEAN UNI
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In practice, the interest rate deci
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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MONETARY POLICY IN THE EUROPEAN UNI
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monetary growth reference value tar
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14 14.1 Introduction Monetary Polic
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central monetary policy. This also
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MONETARY POLICY IN THE USA 421 the
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MONETARY POLICY IN THE USA 423 ous
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Alan Greenspan, said, ‘Certainly,
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MONETARY POLICY IN THE USA 427 at t
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forward attempt to control the publ
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14.4 The Federal Reserve - independ
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MONETARY POLICY IN THE USA 433 Cong
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MONETARY POLICY IN THE USA 435 •
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MONETARY POLICY IN THE USA 437 •
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MONETARY POLICY IN THE USA 439 ing
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MONETARY POLICY IN THE USA 441 nant
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5. If the Fed wishes to discourage
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446 MONETARY ECONOMICS need for suc
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448 MONETARY ECONOMICS ty of invest
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450 MONETARY ECONOMICS the rate of
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452 MONETARY ECONOMICS Wealth effec
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454 MONETARY ECONOMICS should be mo
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456 MONETARY ECONOMICS more rapidly
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458 MONETARY ECONOMICS As indicated
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460 MONETARY ECONOMICS period there
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462 MONETARY ECONOMICS would result
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464 MONETARY ECONOMICS Endnotes Cha
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466 MONETARY ECONOMICS everything.
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468 MONETARY ECONOMICS Chapter 7 1.
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470 MONETARY ECONOMICS 4. Padoa Sch
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472 MONETARY ECONOMICS 6. This appe
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474 MONETARY ECONOMICS References A
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476 MONETARY ECONOMICS Bank of Engl
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478 MONETARY ECONOMICS Bordo M and
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480 MONETARY ECONOMICS Clare A (200
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482 MONETARY ECONOMICS Cuthbertson
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484 MONETARY ECONOMICS European Cen
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486 MONETARY ECONOMICS Friedman M a
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488 MONETARY ECONOMICS Hacche G (19
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490 MONETARY ECONOMICS from the G7
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492 MONETARY ECONOMICS of Political
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494 MONETARY ECONOMICS Malz A (1997
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496 MONETARY ECONOMICS in M Feldste
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498 MONETARY ECONOMICS Pilbeam K (2
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500 MONETARY ECONOMICS Svensson L E
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502 MONETARY ECONOMICS Williamson J
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504 INDEX commodity money 3-4, 16,
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506 INDEX Khusro A 137 Kindleberger
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508 INDEX Quantity Theory of Money