Available online
Description
Cartoons and animated illustrations are used extensively in this programme to explain the nature of the money supply mechanism. The programme begins by looking at a simple transaction, such as paym...ent by cheque for a purchase, and then goes on to look in more detail at the way in which the money supply can be used as a method of controlling the economy, Finally the changing pattern of control of the money supply is discussed with Dr. Charles Goodhart of the Bank of England.
Cartoons and animated illustrations are used extensively in this programme to explain the nature of the money supply mechanism. The programme begins by looking at a simple transaction, such as paym...ent by cheque for a purchase, and then goes on to look in more detail at the way in which the money supply can be used as a method of controlling the economy, Finally the changing pattern of control of the money supply is discussed with Dr. Charles Goodhart of the Bank of England.
| Module code and title: | D284, National income and economic policy |
|---|---|
| Item code: | D284; 05 |
| First transmission date: | 18-07-1979 |
| Published: | 1979 |
| Rights Statement: | |
| Restrictions on use: | |
| Duration: | 00:24:25 |
| + Show more... | |
| Producer: | Roger Penfound |
| Contributors: | Derrick Brooman; Charles Goodhart |
| Publisher: | BBC Open University |
| Keyword(s): | Keynesianism; Macro economics |
| Footage description: | The programme begins by demonstrating that cheques and bank accounts as well as cash are accepted in our society as money. Derrick Brooman describes in greater detail how banks operate by monetising other people's debts, and making loans on which they charge interest. Derrick Brooman examines what proportion of its liabilities a bank keeps as cash reserves and as highly liquid assets such as loans to discount houses and treasury bills. He describes the operations of the clearing houses through the banks' deposits at the Bank of England. He next describes the history of the ways in which the central bank has attempted to control firstly cash deposits and more recently the banks' liquid assets portfolio. Derrick Brooman now talks to Doctor Charles Goodhart, an advisor to the Bank of England, about the Banks' attempts to control the money supply through interference with the banks' holdings. He explains that strict control of the money supply is a recent phenomena connected with the switch to floating exchange rates. He then goes on to discuss the relationship between interest rates and money supply, which classification of the money supply the government aims to control and the time scale in which it attempts to effect that control. |
| Production number: | FOUD033B |
| Videofinder number: | 156 |
| Available to public: | no |
