The problem of controlling liquidity in France

Authors

  • H. FOURNIER

DOI:

https://doi.org/10.13133/2037-3643/11936

Keywords:

Liquidity, France, money supply, banking system, Bank of France, monetary institutions, bank liquidity

Abstract

The idea of liquidity in France finds expression in more or less the same way as in the other western countries. It is normal practice to distinguish between the “liquidity of the economy” on the one hand, and the “liquidity of the banking system” on the other. The former corresponds to the money supply, while the latter comprises the banks’ holdings of notes and coin and their balances with the Bank of France, together with the total amount of the items that they can put into the Bank of France. The methods of influencing liquidity are also similar to those employed in other countries. However, to make them easier to understand, the present article first recalls certain special features of France’s monetary institutions, namely the banks, the specialized institutions and the Treasury. The author then examines the duel problems of controlling the liquidity of the economy and bank liquidity.

 

JEL: E51, E52, E58, G21

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Published

2014-03-27

How to Cite

FOURNIER, H. (2014). The problem of controlling liquidity in France. PSL Quarterly Review, 13(55). https://doi.org/10.13133/2037-3643/11936

Issue

Vol. 13 No. 55 (1960)

Section

Editorial

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