Bengtsson, Ingemar - Nationalekonomiska Institutionen, Ekonomihögskolan - 2005
interest rates and inflation rates. It is argued that the traditional story deriving central bank power from its monopoly of … issuing base money is flawed. That story - in its various guises - is based on the quantity equation. This equation, however … banks seem to influence interest and inflation rates. Here, we suggest that the explanation is that central banks have …
