The Money Stock and Euro-Currency Deposits

Abstract

In this chapter we will examine some of the conceptual and statistical problems in measuring the ‘size’ of the euro-currency system. Unfortunately this is by no means an easy task for we must carefully distinguish between (a) euro-currency liabilities which are held by non-banks and which may be considered as ‘functional’ money, and (b) those euro-currency liabilities which are held by banks and are the manifestation of international financial intermediation. If we refer back to Table 2.1 (p. 14) we find that the overwhelming proportion of euro-currency liabilities, whether in dollars or other currencies, are represented by inter-bank deposits. Only a small, though somewhat variable proportion of euro-currency deposits are held by non-banks, as shown in Table 5.1.