In a macroeconomics book I'm reading, the author talks about money supply control vs. interest rate control as two different approaches in monetary policy of a central bank.
With the goal of price stability being the same in both cases, money supply control alters the supply of money and thus effects the interest rates within the economy in either a expansive or restrictive manner. With interest rate control, the central bank defines a central interest rate to increase or decrease the money supply for the commercial banks, which in turn translate this into the economy.
The author claims that money supply control is only a viable option when there is certainty about the money demand. Interest rate control is preferred when there is uncertainty about money demand.
I don't quite understand the difference between these two approaches as in my opinion they are essentially the same. They are not even comparable as two different approaches, they are both part of the same approach from my understanding: Interest rate control in consequence effects the money supply. So interest rate control allows money supply control.
In most media you'll only read about how the central banks in the US and Europe alter the central interest rate to increase or decrease money supply. I never read about direct money supply control. I feel like I might be confusing terms or just misunderstand the author.
Can anybody shed light on this topic?
Thank you in advance!