Charles Goodhart has already, and very usefully, stressed the importance of recovering the notion of shocks to the supply of broad money. 17 In the main, however, in terms of the underlying drivers, we are talking here of shifts in the supply of broad money caused by shocks to the supply of bank lending: banks create money by extending credit (Diagram C).
I hope you all have a successful symposium, in which you will obtain new knowledge from the various talks and have a lively exchange of information and opinions at the panel discussions. 4  BIS central bankers’ speeches