Bordo, Michael D; Choudhri, Ehsan U; Schwartz, Anna J - In: Journal of Money, Credit and Banking 19 (1987) 2, pp. 181-97
A widely held view of interest rate control is that under this policy the demand for M1 determines the behavior of the stock of M1. An alternative view is that under interest rate control the supply function of M1 is the residual quantity determined by the banking system given the levels of bank...