Publisher's Synopsis
This book is both a theory of monetary policy and an examination of how it has worked in the UK. It first analyzes the behaviour of the banking system, and then the difficulties of central bank control.;The authors argue that money creation is an endogenous process, determined partly by the price level, and not vice versa. The book challenges some of the accepted wisdoms of monetary theory, providing a basic explanation of why monetary targets are now being abandoned, and makes proposals for the post-target era.
