Money, Debt and Liquidity

  • D. C. Rowan


In our outline of the liquidity preference theory of interest we have already put forward a definition of the money supply. This definition, however, was stated dogmatically and the principles underlying it were never discussed. At the same time we made reference to the concept of liquidity. Our task in this chapter is to examine the concepts of money and liquidity in more detail and thus explain and justify the brief references made in the course of our earlier analysis.


Money Supply Government Bond Treasury Bill Bank Deposit Money Stock 
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Suggested reading

  1. Bank of England, ‘Components of Private Sector Liquidity’, Bank of England Quarterly Bulletin (September 1979).Google Scholar
  2. Bank of England, ‘Transactions Balances — A New Monetary Aggregate’, Bank of England Quarterly Bulletin (June 1982).Google Scholar
  3. G. E. Dennis, Monetary Economics (Longman, 1981) ch. 1.Google Scholar
  4. HM Treasury, Economic Progress Report, no. 123 (July 1980).Google Scholar
  5. W. T. Newlyn, The Theory of Money (Oxford University Press, 1971) ch. 1.Google Scholar
  6. R. S. Sayers, Modern Banking 7th edn (Oxford University Press, 1967) chs 1, 2, 7, 8.Google Scholar

Copyright information

© D. C. Rowan 1983

Authors and Affiliations

  • D. C. Rowan
    • 1
    • 2
  1. 1.University of SouthamptonUK
  2. 2.University of New South WalesSydneyAustralia

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