The Control of the Money Supply

adjustment advances amount balance sheet bank deposits bank lending Bank of England Bank rate Bank's banking sector banking system behaviour borrowers building societies capital cash ratio cent changes in interest clearing banks commercial bills companies cost demand for money demand function deposit banks determined discount houses discount market effect elasticity equilibrium expected expenditure Federal Reserve financial assets financial institutions fixed fractional reserve system funds gilt-edged stocks government debt government securities held hire purchase controls impact important increase indicator influence investors Keynesian level of bank liabilities liquid assets liquidity ratio theory liquidity trap loans London clearing long-term measures ment monetary authorities monetary control monetary policy money multiplier money stock money supply open-market operations payments period permanent savings private sector private sector's demand rate of interest reduce reserve ratio reserve requirements rise savings and investment short run short-term interest rates special deposits speculative demand transactions treasury bills