A multiplier model for controlling the money stock

Deskripsi

In recent years, the money stock has become increasingly as a target variable of monetary policy. Following the changeover to flexible exchange rates, the Swiss National Bank too began to gear its monetary policy to a specific rate of growth of the money stock (cf. Schiltknecht). To do this, a mechanism for controlling money stock growth had to be developed. We will discuss below models that can be used to control the money stock in the short run. Printed Journal.