[OPE-L:2039] electronic money, etc.

Michael Williams (100417.2625@compuserve.com)
Mon, 29 Apr 1996 16:38:14 -0700

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Costas asks:

Is it at all significant that central banks today
hold more gold than ever, perhaps 500f all the gold that has ever
been produced? If they are worried that off-loading the gold would
destroy the valuation of reserves throughout the credit system, what
is the significance of this for theory?

To which I await Duncan's answer with interest. But in the meantime, I wonder
(genuinely - I don't know) which of the money markets' players knows about CBs'
bullion holdings, and significant it is in supporting their confidence in the
relevant currency (as compared to commercial evaluations of risk, economic
performance, the relevant state's monetary policy stance, etc, etc)?

Michael W.