ABSTRACT
The revival of interest in monetary policy in the 1950s gave rise to a controversy about monetary theory. The Report of the UK Radcliffe Committee (1959) argued that the decisions that determine the level of total demand depend on the whole liquidity position of spenders, not upon immediate access to money, and that therefore monetary policy must focus on the structure of interest rates rather than on money supply. This article sought to elucidate the implications for monetary theory.
