No Money, No Inflation - the Role of Money in the Economy

16 Pages Posted: 28 Apr 2005

See all articles by Mervyn King

Mervyn King

Bank of England - Monetary Analysis


In this article, Mervyn King, Deputy Governor, examines the apparent contradiction that the acceptance of the idea inflation is a monetary phenomenon has been accompanied by the lack of references to money in the conduct of monetary policy during its most successful period. The disappearance of money from the models used by economists is, however, more apparent than real, with official interest rates playing the leading role as the instrument of policy, with money in the wings off-stage. Nevertheless, there are real dangers in relegating money to this behind-the-scenes role.

Suggested Citation

King, Mervyn, No Money, No Inflation - the Role of Money in the Economy. Bank of England Quarterly Bulletin, Summer 2002, Available at SSRN:

Mervyn King (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics