General Liquidity and Money

The experience of inflation after the war taught us the lesson that money is not a sole factor which can affect general demand. Based upon the lesson, the Radcliffe Report says that the most important target of monetary policy is not money supply, but a general liquidity, which includes money and other financial assets without substantial distinction. But non-monetary liquid assets can not take place of money as a generally acceptable claim and as a unit of account, though they can take the place of money as a storage of value. Money is, thus, still a distinctive factor in a monetary economy which needs special observation.5KJ00005072365departmental bulletin pape