MONEY SUPPLY CONTROL AND LAGGED RESERVE ACCOUNTING.

This article presents a comment on the article "Money Supply Control and Lagged Reserve Accounting." The author examines the ability of the U.S. Federal Reserve to control the money supply under lagged reserve accounting. The author examines how manipulation of the interest rate can impact the demand for money and presents a model that is designed to test how effectively this method of control works. The author's findings suggest that authorities can control the money stock by manipulating that base control.