Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book provides an introduction to a university course in public finance and for use of students of professional examinations. It discusses the nature and attributes of money and deals with the Bank of England, the discount market and the commercial banks. The book focuses on the implications for monetary policy of a Budget surplus or deficit and monetary and fiscal details. It reviews many of the links between the sphere of public finance and that of money. The book outlines how government expenditure and revenue have changed in this century. It illustrates the value-added tax, which Britain will have to adopt if she enters the Common Market. The book also outlines the problems of using monetary and fiscal policy to control the economy.