Journal Article

The contributions and limitations of \"monetary\" analysis

Abstract: During Voicker's presidency, the role of monetary aggregates as a guide to policy came under increasing public discussion. In this speech, Voicker discusses the advantages and pitfalls of a strategy of targeting monetary aggregates and alternative operating procedures. He argues that monetary targeting imposes a beneficial discipline on Federal Reserve policies. He also notes, however, that instability in velocity over horizons relevant for policy and the possibility of credit market disturbances make attention to other sources of information imperative.

Keywords: Monetary policy; Velocity of money; Money supply; Volcker, Paul A.; Federal Reserve System - History;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1989

Issue: Special

Pages: 35-41