The control of liquidity in Italy
Keywords:Liquidity, monetary control, Italy, quasi-money, monetary policy, central bank
Only recently, with the publication of the Radcliffe Report, has the issue of the control of liquidity risen to the forefront of economic debate, primarily in connection with anti-cyclical policies. Money, and the control of its supply, continues to be the main component of regulation policies on the demand for goods and services. The innovation lies in the consideration of quasi-money as assets capable of being rapidly transformed into money without appreciable loss. While such aspects have always been considered, their novel prominence places the state treasury on the centre stage of monetary policy along side the central bank. The article reviews the recent experience of Italy in this regard.
JEL: E51, E52, E58