Description
(Text)
The Bank of England keeps the secret for making
money remain money.
Walter Bagehot described the BoE's successful
monetary policy already in 1873, in his well and
widely known "Lombard Street"; which is
erroneously considered as the work of a politician,
not relevant in academic money-theory terms and not
concerned with the general question of money demand
and supply.
The orthodoxy of contemporary liberal monetary
theory finally impedes other central banks, i.e.
central banks in less developed countries, in having
a good understanding and application of money
management and finance. It is time to let the work
of Bagehot get relevance at a monetary theory level,
since it is able to base successful money
management.
