Chapter 5 does not comprise even a précis of the massive euro-currency markets. Instead it explores implications for the analyses of Chapters 2–4 of euro-currency phenomena, especially the euro-dollar. The materials of Chapters 2–4 that are especially closely related to eurocurrency theory include (re)disintermediation, ‘credit versus money’, monetary-base versus interest-rate management-criteria for open-market operations and the slippages between central-bank operations on the monetary base and resulting money-supply effects. Chapter 5 also introduces some new theoretical material, including criteria for appropriate definitions of money-supply in open real-world economies, economies with significant international-trade sectors.
KeywordsCentral Bank Federal Reserve Money Supply Monetary Base Borrowing Cost
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