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The Supply of Money

In: Introduction to Macro-Economics: A Workbook

Author

Listed:
  • J. Harvey

    (University of Reading)

  • M. Johnson

    (Hatfield Polytechnic)

Abstract

The main form of money in a developed economy is commercial bank deposits. It is therefore important to know how the volume of bank deposits is determined, and to what extent the monetary authorities can control this volume. The activities of the commercial banks, by granting credit and increasing liquidity, affect AD and thus the level of activity.

Suggested Citation

  • J. Harvey & M. Johnson, 1973. "The Supply of Money," Palgrave Macmillan Books, in: Introduction to Macro-Economics: A Workbook, chapter 9, pages 49-54, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-01871-0_9
    DOI: 10.1007/978-1-349-01871-0_9
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