Credit aggregates: some suggestions





Monetary policy, credit aggregates, currency base


There is continuing controversy surrounding the efficacy of operating monetary policy on the basis of targeting monetary aggregates. The disappointing experience of many countries in hitting these targets has led some commentators to suggest that such an approach is wrong; other commentators assert that the objective is right, but that the methods of achieving it are wrong. The author is in the latter category, and he elaborates the view that control of the currency base in the economy is both possible and a more efficient way of controlling credit aggregates.


JEL: E52


McLEOD, ALEX N. "The Mysteries of Credit Creation", Tbe Canadùm Bankel', Vol. 66, No.3,

Winter 1959, pp. 20-28.

McLEOD, ALEX N. "Credit Expansion in ao Open Economy", Tbe Economie Journal, VoI.

LXXII, September 1962, pp. 611-640.,

McLEOD, ALEX N. "Some Observations on Trade Credit and MonetalY Policy", The Economie

Journal, VaL LXXIV, September 1964, pp. 727-734.

McLEOD, ALEX N. "Techoical Controls aver Bank Deposits in Bdtain", Oxford Economie

Papers, VaL, 18, no. 2,July 1966 pp. 177-192.

McLEOD, ALEX N. The Principles ojFinancial Intermediation, Lanham MD, New York, London;

University Press of America, 1984, pp. xiv + 237. Index. Cloth, ISBN 0-8191-3831-2;

paper, ISBN 0-8191-3832-0.

VACIAGO, GIACOMO "A Note 00 Credit Aggregates as Targets or Indicators of Monetary

Policy", in this Review, No. 153, .lune 1985, pp.155-171.

VINING, RUTLEDGE "A Process Analysis of Bank Credit Expansion ", Quarterly Journal +

Economies, VaL UV, No.4, August 1940, pp. 599-623.




How to Cite

MCLEOD, A. (2013). Credit aggregates: some suggestions. PSL Quarterly Review, 39(157).