ABSTRACT
‘If we take into consideration the total liquidity of the banking system open-market transactions as practised in the Netherlands and … Germany are of qualitative rather than quantitative significance. This is tantamount to the saying that in general these transactions in no way influence the total volume of liquidity at the disposal of the banking system (cash and potential liquidity) but merely its composition.’ (EEC, The Instruments of Monetary Policy (1962), pp.38-9.)
