Further Essays in Monetary Economics (Collected Works of Harry Johnson)

Chapter 3

Problems of Efficiency in Monetary Management*

I. INTRODUCTION

Monetary management as generally understood means the management of the money supply and monetary and credit-market conditions by the monetary authority (the central bank) in the pursuit of certain general social objectives. These objectives may either be assigned to the central bank by the national government or be left to the central bank to establish for itself, depending on whether the central bank is a subordinate instrumentality of national economic policy or is allowed a substantial measure of independence. In the past, economists specializing in the study of monetary management have been predominantly either institutionalists concerned with the detailed structure ...