A note on credit aggregates as targets or indicators of monetary policy

Authors

  • G. VACIAGO

DOI:

https://doi.org/10.13133/2037-3643/11079

Keywords:

Credit aggregates, monetary policy

Abstract

With increasing deregulation and financial innovation in many domestic banking systems, it has been suggested that the present emphasis on controlling the money stock is no longer appropriate. Instead, a broader definition of credit should be introduced and movements in credit aggregates should be controlled. The author argues that there is no direct transmission mechanism between a broad credit aggregate and changes in private and government debt, and that the authorities have limited ability to control such an aggregate. Therefore its choice as the main target for monetary policy would be inappropriate.


JEL: E52

Downloads

Published

2013-11-21

How to Cite

VACIAGO, G. (2013). A note on credit aggregates as targets or indicators of monetary policy. PSL Quarterly Review, 38(153). https://doi.org/10.13133/2037-3643/11079

Issue

Vol. 38 No. 153 (1985)

Section

Editorial

License

 
 
Licenza Creative Commons
 
All material in this website and every article published by the Review are licensed under a Creative Commons Attribution - Non commercial - No derivates 4.0 International license.
The authors who publish on this journal maintain all rights on their works without any restrictions.