Mostly Window-Dressing

November 2, 1968 arithmetic dished up by borrower interests.
In sum, while the major problem facing the banking system is a shortage of deposits in relation to credit demand and growth of national income at current prices, the major problem facing the Reserve Bank is the selection of the areas whose credit demand should be satisfied first. Yet the Reserve Bank has been conspicuously silent on the question of boosting deposit resources. On the other hand, it is prepared to encourage indiscriminate expansion of credit with created money. This is the content, if you like, of the Reserve Banks latest credit 'policy'.