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What are your instruments of monetary control?
His first task will be to account for the lapse in monetary control.
Nor does the presence of nonbank intermediaries mean that monetary control through commercial banks is an empty gesture.
A rise in the exchange rate, it is argued, would give the central bank proper monetary control.
The result is that the country still lacks monetary control, but gains a currency associated with low inflation.
But in last month's budget speech, Gordon Brown, the chancellor of the exchequer, made no specific comments about monetary control.
Similar(27)
Even if increases in the assets and liabilities of uncontrolled intermediaries wholly offset enforced reductions in the supplies of controlled monetary assets, even if monetary expansion means equivalent contraction by uncontrolled intermediaries, monetary controls can still be effective.
It was, in fact, based on long-ago work by James Tobin and William Brainard, whose 1963 paper Financial intermediaries and the effectiveness of monetary controls addressed exactly the issue that has the MMT and related people so exercised today.
Against this, it has been argued that in highly developed economies the supply of money varies largely with the demand for it and that the authorities have little power to vary the supply through purely monetary controls.
Several council members said they were concerned that in disclosing their ties to established, reputable groups that had made good use of city money, they would be lumped in with members who have financed groups whose programs and monetary controls are being questioned.
The Bank of Japan is hesitant to return to a full-blown easing of monetary controls since that policy, which involves flooding markets with extra cash under a liquidity target, had little effect in beating deflation when it was in place until March 2006.
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