Preface to Paperback Edition -- Preface -- Contents -- List of Tables -- List of Figures -- 1. Introduction -- PART I. THE BEHAVIOUR OF THE FINANCIAL SYSTEM -- 2. The Macroeconomic Behaviour of the Banking System -- 1. The place and functions of banks -- 2. The equilibrium size of the banking system -- 3. The effect of a relaxation of lending criteria -- 4. Banks and the wholesale money markets -- 5. Summary of conclusions -- 3. The Behaviour of Interest Rates: The Theoretical Background -- 1. Introduction -- 2. Classical and multiplier adjustments -- 3. Interest rates and expectations -- 4. The Behaviour of Interest Rates Continued -- 1. The determination of short-term interest rates and the influence of the central bank -- 2. The relation between our account and previous discussion of the rate of interest -- 3. The behaviour of interest rates since 1971 -- 5. The Behaviour of Exchange Rates -- 1. The general determinants of exchange rates -- 2. Policy effects on exchange rates -- 3. Postwar experience with exchange rates -- 4. External influences on the domestic financial system -- 6. Government Transactions, Money, and Interest Rates -- 1. The general impact of public-sector debt and deficits -- 2. The effect of public-sector transactions on the financial system -- 3. The relation between fiscal and monetary policy in the UK policy debate -- PART II. MONETARY CONTROL AND THE COURSE OF THE AGGREGATES -- 7. UK Monetary Policy since 1971 -- 8. Central-Bank Rate as an Instrument of Monetary Control -- 1. The modus operandi of central-bank rate -- 2. Limitations to the use of the central bank's powers -- 3. The effect of interest rates on the monetary aggregates -- 9. Monetary Base Control -- 1. The idea of monetary base control -- 2. The effects of monetary base control -- 3. Conclusions -- 10. The Corset, Overfunding, and Banking Supervision.

1. The Corset, 1973-1980 -- 2. Funding policy and over funding -- 3. Prudential banking supervision -- 11. Monetary Growth since the mid-1960s -- 1. A first survey of the data -- 2. Fluctuations in lending to the private sector -- 3. The consequences of increases in lending -- 4. Implications for monetary analysis and monetary control -- Statistical note on banking statistics -- PART III. CONCLUSIONS -- 12. The Limitations and Role of Monetary Policy -- 1. Money and inflation -- 2. Limitations to interest rates as a means to influence investment -- 3. Limitations to the authorities' control over exchange rates -- 4. Some conclusions about monetary policy since the mid-1970s -- 13. Monetary Policy without Monetary Targets -- 1. Monetary policy as part of general economic policy -- 2. The domestic role of monetary policy -- 3. Monetary policy and the exchange rate -- 4. The mix of monetary and fiscal policy -- Bibliography -- Index -- A -- B -- C -- D -- E -- F -- G -- H -- I -- J -- K -- L -- M -- N -- O -- P -- R -- S -- T -- U -- V -- W -- Y.