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Monetarism under Thatcher : lessons for the future / Gordon T. Pepper and Michael J. Oliver.

Lippincott Library HG939.5 .P348 2001
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Format:
Book
Author/Creator:
Pepper, Gordon T., 1934-
Contributor:
Oliver, Michael J.
Institute of Economic Affairs (Great Britain)
Language:
English
Subjects (All):
Monetary policy--Great Britain.
Monetary policy.
Money supply.
Great Britain.
Money supply--Great Britain.
Great Britain--Economic policy--1979-1997.
Economic policy.
Physical Description:
xxviii, 114 pages : illustrations ; 24 cm
Place of Publication:
Cheltenham, UK ; Northampton, MA : Edward Elgar, [2001]
Contents:
Part I History
1 A brief history of monetary policy since Radcliffe 3
'Pre-Competition and Credit Control' 3
'Competition and Credit Control'
Mark I 5
Mark II 7
2 Monetarism in the UK 8
The Move to monetary targets 8
Controlling the money stock 9
3 Monetarism and the officials 12
4 Monetarism under Thatcher 16
The Green Paper Monetary Control 16
The MTFS 17
The Treasury and Civil Service Select Committee Debate 20
5 Monetarism and the politicians 21
Keith Joseph 21
Geoffrey Howe 22
Nigel Lawson 24
Margaret Thatcher 27
Postcript: a personal note by Pepper 29
Part II Policy Dilemmas
7 A Type of supply-side control: control via the 'counterparts' 39
Printing-press money 39
Fountain-pen money 40
The 'counterparts' of broad money 41
Relationship between the counterparts 42
8 Overfunding: a useful tool or cosmetic device? 44
Historical background 44
The Bank's bill mountain 44
Problems with overfunding 46
9 Asset-price inflation 48
Financial bubbles 49
The efficient-market hypothesis 50
Appendix Types of traders in securities 51
10 Debt deflation 54
The cure for debt deflation 55
Debt management policy in the UK 56
Part III Policy Solutions
12 Monetary base control 63
Historical background 65
Definitions of the monetary base 65
Criticisms of MBC 66
Howe's reasons for rejecting MBC 68
Lawson's reasons for rejecting MBC 71
The US experiment 73
The Bank's entrenched attitude 74
Lower level of interest rates 77
The practice of other countries 78
13 MBC versus funding policy 79
14 A published target for the monetary base 81
Appendix 1 Definitions of monetary aggregates 87
Appendix 2 The behaviour of broad money in 1980/81 88
Appendix 3 UK versus US monetarism 90
Appendix 4 A monetary model for the UK 92
The narrow aggregates 92
Broad money 93
Appendix 5 Demand-side or supply-side control
speed of response of demand and supply 97.
Notes:
"In association with the Institute of Economic Affairs."
Includes bibliographical references (pages 105-108) and index.
ISBN:
1840646373
OCLC:
45463526

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