As previously mentioned, Money Stock
is compiled from currencies such as cash and deposits owned by non-financial corporations and individuals.
Francis argued that the Fed should maintain a steady growth rate of the money stock
and blamed the Fed's targeting of interest rates and money market conditions for producing destabilizing swings in money stock
At the end of 2012, narrow money stock
(M1) grew 13.9 percent YoY mainly due to increase in the currency held by the public (9.8 percent) and growth in demand deposits (15.5 percent).
First, because the empirical evidence compiled by Friedman and Schwartz suggested that changes in the growth rate of the money stock
had effects that were long and variable.
where [M.sub.r,t+1] represents the aggregate money stock
of traders, [M.sup.n.sub.t+1] = [integral] [M.sub.i,t]d[F.sub.t] represents the aggregate money stock
of nontraders, and [P.sub.t][Y.sub.t] represents the aggregate nominal revenue.
If one does allow for the existence of money, as Walras did, then one must also ask where the money came from while also admitting that the greatest part of the money stock
, in the form of demand deposits and cash, has its counterpart in debt of the nonblank economy to the banking system.
Thus, while the short-term interest rates versus monetary targeting regimes debate seems to have long been settled with reference to the developed financial systems, the large majority of formerly planned economies outside the European Union (EU), that is Albania, the 12 members of the Community of Independent States (3) and until recently Romania have been running programmes supported by the International Monetary Fund (IMF) in which monetary targets are standard, the performance criteria being specified either on base money or its sources targets with a view of achieving a certain rate of expansion of the money stock
and thereby a certain target for the price level (Keller and Richardson, 2003).
It relates more particularly to regulation by the Central Bank of the money stock
, its primary objective being to guarantee monetary stability.
First, the recovery was driven by increases in the stock of money: "the broad movements in the stock of money correspond[ed] with those in income" (1963, 497), and "the rapid rate of rise in the money stock
certainly promoted and facilitated the concurrent economic expansion" (1963, 544).
Data for money stock
and components reflect annual seasonal
Docherty emphasises chapters 17 and 19 of the General Theory, which demonstrate, he suggests, that Keynes proved unable to insulate his theory of involuntary unemployment from the neoclassical claim that it could always in principle be eliminated by downward price flexibility: deflation would increase the real value of the money stock
and thereby reduce the rate of interest (this is the so-called 'Keynes effect').
King and Wolman (2004) show that Markov-perfect policies with an optimal nominal money stock
instrument can imply equilibrium indeterminacy at two levels.
industrial production plunges by 50%, the money stock
drops by 28% and the number of banks falls by 25%.
While the divergence between the monetary base and the money stock
continued to expand, the Bank of Japan's reluctant purchases of Japanese government bonds, "unconventional" assets like asset-backed securities and equities from the banks helped to change the composition of the monetary base.
Thus, the ceiling is different from monetary targeting as practiced by the Bundesbank who announced a target corridor, or more precisely a funnel, for the future money stock
that would be in line with price level stability.