In their seminal article on ‘Money and Business Cycles’ Milton Friedman and Anna J. Schwartz emphasised the need for historical studies of the relationships between monetary time series and cyclical change in the level of economic activity.1 This present chapter uses recently collated commercial bank balance sheet data to examine the behaviour of English banks over the course of mid-nineteenthcentury cyclical fluctuations. It concentrates on one sector of the money market, namely commercial banks, although the investigation is carried beyond the definitional confines of the money stock, as both bank assets and liabilities are examined.
KeywordsIncome Posit Volatility Milton Culmination
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Notes and References
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