| Abstract: | Summary The well-known multiplier approach to money supply processes is extended to the case of the open economy of the Netherlands.
It was found, first, that the Dutch banking system serves as an important buffer in the Dutch money supply process. Second,
the short-run elasticities of money supply and money demand with respect to the call-money rate were found to be +0.23 and
−0.09 respectively. Third, the impact multiplier of money with respect to the open market policy variable turned out to be
0.52. The conclusion is that the Dutch central bank is capable, in principle, to control the stock of money in the short run.
Rede, uitgesproken bij de aanvaarding van het ambt van gewoon hoogleraar in de staathuishoudkunde aan de Rijksuniversiteit
te Rotterdam op donderdag 22 maart 1973. |
