Credit aggregates: some suggestions
Keywords: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.
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