This book is both a theory of monetary policy, and an examination of how it has worked in the UK. It first analyses the behaviour of the banking system, and then the difficulties of central bank control. The authors argue that money creation is an endogenous process, determined partly by the price level, and not the other way round.
Readership: Economists concerned with monetary theory and economic policy; journalists; policy-makers.
J. C. R. Dow, Visiting Fellow, National Institute for Economic and Social Research; formerly Economics Director, Bank of England, and I. D. Saville, Senior Investment Manager, Bank of England
"`The work that made the deepest impression on me because of the great practical importance of its conclusions and novelty of its argument went to the heart of the controversy over monetarism ... The book has started off a major controversy that will no doubt continue ... its influence is sure to grow.' Alec Cairncross"
"`A formidable critique of monetary policy.' Times"
"`A book that monetarists of all varieties will neglect at their peril... The work will become a standard textbook.' Samuel Brittan, Financial Times"
"`the recent demise ... of money-growth targetting as the centrepiece of monetary policy has created something of an intellectual vacuum [which the book] is an attempt to fill ... a skilful blending of theoretical and historical analysis geared to the generation of policy-relevant conclusions ... thoughful, closely argued and readable; it will serve as a useful antidote to the stultifying parochialism of so much American macroeconomics.'
"'a careful empiricism which pays attention to the significance of local institutional idiosyncrasies and a skillful blending of theoretical and historical analysis geared to the generation of policy-relevant conclusions ... These qualities are very much on display in this book.'
David Laidler, University of Western Ontario, Journal of Economic Literature"