Search Results
Journal Article
Monetary aggregates, payments technology, and institutional factors
Economic theory implies that the quantity of money in the economy is linked both to the Federal Reserve's policy-making instruments and its ultimate objectives and should therefore be useful in formulating policy decisions. The Federal Reserve defines monetary aggregates, composed of financial assets like cash and demand deposits, expressly for this purpose. ; Over time, substantial changes have been observed in the close relationships between monetary aggregates and economic activity. Between 1990 and 1994, growth in the Federal Reserve's M2 monetary aggregate was much slower than expected, ...