The paper advocates a reallocation of central bank assets towards easier-to-sell securities, so as to facilitate a tightening of monetary policy when needed, and descries how such a tightening might be carried out

The paper described the historical use of commercial bills in Bank of England operations, and suggests that by making more active use of the policy instrument of central bank asset choice, and by acknowledging the connection between liquidity regulation and open-market operations, central banks...