The influence of the public’s behaviour on liquidity creation
While liquid funds in the hands of public and private operators cannot be created except by the credit system and the treasury, it is not equally easy to grasp how the public’s behaviour may effect the amount of liquid resources in existence. The credit system can influence public’s capacity to hold...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2014-02-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11669 |
| _version_ | 1811172492350324736 |
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| author | A. GAMBINO |
| author_facet | A. GAMBINO |
| author_sort | A. GAMBINO |
| collection | DOAJ |
| description | While liquid funds in the hands of public and private operators cannot be created except by the credit system and the treasury, it is not equally easy to grasp how the public’s behaviour may effect the amount of liquid resources in existence. The credit system can influence public’s capacity to hold financial assets through loans. However, it cannot decide at its discretion the volume of financial assets held by the public. On the contrary, in several ways, e.g. through convertibility, the public can make its influence felt on monetary reserves, and as a consequence on the nominal volume of financial assets. Thus, if the first priority of economic policy is assigned to the maintenance of monetary stability, the monetary authorities have few margins to regulate at their discretion the trend of liquid assets at the market’s disposal.
JEL: E03, E51, E52, G02
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| first_indexed | 2024-04-10T17:32:05Z |
| format | Article |
| id | doaj.art-1efe210d64b14e08badb0855888a331c |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:32:05Z |
| publishDate | 2014-02-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-1efe210d64b14e08badb0855888a331c2023-02-03T16:44:03ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432014-02-01166710.13133/2037-3643/11669The influence of the public’s behaviour on liquidity creationA. GAMBINOWhile liquid funds in the hands of public and private operators cannot be created except by the credit system and the treasury, it is not equally easy to grasp how the public’s behaviour may effect the amount of liquid resources in existence. The credit system can influence public’s capacity to hold financial assets through loans. However, it cannot decide at its discretion the volume of financial assets held by the public. On the contrary, in several ways, e.g. through convertibility, the public can make its influence felt on monetary reserves, and as a consequence on the nominal volume of financial assets. Thus, if the first priority of economic policy is assigned to the maintenance of monetary stability, the monetary authorities have few margins to regulate at their discretion the trend of liquid assets at the market’s disposal. JEL: E03, E51, E52, G02 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11669Liquid fundscredit systemtreasurypublic behaviournominal volume of financial assetsmonetary reserves |
| spellingShingle | A. GAMBINO The influence of the public’s behaviour on liquidity creation PSL Quarterly Review Liquid funds credit system treasury public behaviour nominal volume of financial assets monetary reserves |
| title | The influence of the public’s behaviour on liquidity creation |
| title_full | The influence of the public’s behaviour on liquidity creation |
| title_fullStr | The influence of the public’s behaviour on liquidity creation |
| title_full_unstemmed | The influence of the public’s behaviour on liquidity creation |
| title_short | The influence of the public’s behaviour on liquidity creation |
| title_sort | influence of the public s behaviour on liquidity creation |
| topic | Liquid funds credit system treasury public behaviour nominal volume of financial assets monetary reserves |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/11669 |
| work_keys_str_mv | AT agambino theinfluenceofthepublicsbehaviouronliquiditycreation AT agambino influenceofthepublicsbehaviouronliquiditycreation |