In 1656 he had founded the Stockholm Banco, a private company that intended to issue paper money, enjoying royal privileges in return for a royal cut.

Meanwhile corporate borrowers have found it hard to issue commercial paper, as money-market funds have fled from all but the safest assets.

Based on the analysis of the theoretical differences in money demand between Keynesianism and monetarism, this paper tackles the issue whether money demand in China is related to its interest rates.