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‘Noise’

In: Money and the Economy: Central Bankers’ Views

Author

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  • Luigi Einaudi

Abstract

The explanation of Donato Menichella’s fuge rumores helps to highlight a part of his code of conduct that is of much greater importance for Italy than an academic nomination that did not terminate in the normal affixing of seals. With the consent or co-operation of the Minister of the Treasury, the Governor of the Bank of Italy can use two powerful weapons — the discount rate and the banks’ compulsory reserve coefficient — to dominate the lira, the stock exchange and industrial and commercial activity.

Suggested Citation

  • Luigi Einaudi, 1987. "‘Noise’," Palgrave Macmillan Books, in: Pierluigi Ciocca (ed.), Money and the Economy: Central Bankers’ Views, chapter 5, pages 121-125, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-07927-8_6
    DOI: 10.1007/978-1-349-07927-8_6
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