Should we reduce the role of banks in the monetary policy process?
Abstract: The traditional view of banks in the monetary and price level control process is based on banks being producers of money in the form of deposits. Some economists have recently argued, however, that growth of bank deposits has no affect on price level stability. They say that the role of banks in the monetary policy process could be reduced with no adverse effect on price level stability, principally by removing reserve requirements.
File(s): File format is application/pdf http://www.kansascityfed.org/PUBLICAT/ECONREV/EconRevArchive/1988/1q88bosc.pdf
Provider: Federal Reserve Bank of Kansas City
Part of Series: Economic Review
Publication Date: 1988