1.   For equilibrium, where is the rate of change of the nominal money supply set by the monetary authorities.

2.   Rational agents are not repeatedly and systematically duped by the actions of the monetary authorities.

3.   The provision of a placid monetary environment in which monetary policy was not itself a source of instability was the most that could be expected from the monetary authorities.

4.   But no matter how erratic the behaviour of the monetary authorities becomes, the private sector will sooner or later latch on to what is happening.

5.   Governments and their agents, the monetary authorities, are continually changing course in the conduct of their monetary policies.

6.   The experience of the monetary authorities in carrying out a policy of control of the money supply has not, however, been a happy one.

7.   In this way such balances would be outside the control of the monetary authorities in the US.

8.   Thus, if the monetary authorities increased the money supply, the whole of the increase would be added to speculative balances and the interest rate would remain unchanged.

9.   And in our case, the downside could be even greater because there is no international monetary authority that is large enough to bail us out.