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An econometric study of the British monetary system

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  • Jacques Mélitz

    (School of Management & Languages - HWU - Heriot-Watt University [Edinburgh])

  • Henri Sterdyniak

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

This article aims to explain the British money stock and to shed general light on the British monetary system. The money stock does not depend strictly on popular preferences outside the banks and the authorities. Regulations do not permit the British banks to take an uncovered position in a foreign currency, and therefore to augment their domestic debt assets by borrowing abroad. As a result, these banks have no immediate control over their total domestic assets. Their basic policy variables are their interest rate on loans to private customers, and the rate of services that they provide on their deposits (...).

Suggested Citation

  • Jacques Mélitz & Henri Sterdyniak, 1979. "An econometric study of the British monetary system," SciencePo Working papers Main hal-01009193, HAL.
    • Handle: RePEc:hal:spmain:hal-01009193
    DOI: 10.2307/2231504
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-01009193
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    References listed on IDEAS

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    1. Parkin, Michael & Sumner, Michael & Ward, Robert, 1976. "The effects of excess demand, generalized expectations and wage-price controls on wage inflation in the UK: 1956-1971," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 2(1), pages 193-221, January.
    2. M. Parkin, 1970. "Discount House Portfolio and Debt Selection," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(4), pages 469-497.
    3. Hamburger, Michael J., 1977. "The demand for money in an open economy : Germany and the United Kingdom," Journal of Monetary Economics, Elsevier, vol. 3(1), pages 25-40, January.
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