The Money Stock and Euro-Currency Deposits

  • George W. McKenzie
Chapter
Part of the Problems of Economic Integration book series

Abstract

In this chapter we will examine some of the conceptual and statistical problems in measuring the ‘size’ of the euro-currency system. Unfortunately this is by no means an easy task for we must carefully distinguish between (a) euro-currency liabilities which are held by non-banks and which may be considered as ‘functional’ money, and (b) those euro-currency liabilities which are held by banks and are the manifestation of international financial intermediation. If we refer back to Table 2.1 (p. 14) we find that the overwhelming proportion of euro-currency liabilities, whether in dollars or other currencies, are represented by inter-bank deposits. Only a small, though somewhat variable proportion of euro-currency deposits are held by non-banks, as shown in Table 5.1.

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Further Reading

  1. A. A. Alchian and W. Allen, University Economics (Belmont, California: Wadsworth, 1968).Google Scholar
  2. A. E. Burger and Anatol Balbach, ‘Measure of the Domestic Money Stock’, Review of the Federal Reserve Bank of St Louis (May 1972).Google Scholar
  3. Federal Reserve System, ‘A New Measure of the Money Stock’, Federal Reserve Bulletin (Oct 1963). Federal Reserve System, ‘Revision of Money Supply Series’, Federal Reserve Bulletin (Aug 1962).Google Scholar
  4. H. G. Johnson, ‘The Monetary Approach to Balance of Payments Theory’, in International Trade and Money, ed. M. Connolly and A. Swoboda (London: Allen & Unwin, 1973).Google Scholar

References

  1. 1.
    ‘A New Measure of the Money Stock’, Federal Reserve Bulletin (Oct 1960) pp. 1102–13, this quotation p. 1103.Google Scholar
  2. 2.
    ‘Revision of Money Supply Series’, Federal Reserve Bulletin (Aug 1962) pp. 941–5, this quotation p. 944.Google Scholar
  3. 3.
    A. E. Burger and Aiiatol Balbach, ‘Measure of the Domestic Money Stock’, Review of the Federal Reserve Bank of St Louis (May 1972) pp. 10–23.Google Scholar
  4. 4.
    A. A. Alchian and W. Allen, University Economics (Belmont, California: Wadsworth, 1968).Google Scholar
  5. 5.
    H. G. Johnson, ‘The Monetary Approach to Balance of Payments Theory’, in International Trade and Money, ed. M. Connolly and A. Swoboda (London: Allen & Unwin, 1973).Google Scholar

Copyright information

© George W. McKenzie 1976

Authors and Affiliations

  • George W. McKenzie
    • 1
  1. 1.University of SouthamptonUK

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