Sentences with phrase «quantities of paper money»

Not exact matches

The importance of these insights for a proper understanding of central banks» devices for monetary control becomes instantly apparent once one realizes that, by regulating the actual quantity of its outstanding notes and deposit balances, together with the terms upon which it is willing to make more of the last available on credit to private sector financial firms, a central bank is able to influence, not just the quantity of circulating paper money, but the quantity of money substitutes created by the private sector.