In 2023, an article in the Economist notes that tracking the money supply is deeply unfashionable. Since

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In 2023, an article in the Economist notes that “tracking the money supply is deeply unfashionable. Since the 1980s central banks have generally focused on interest rates rather than trying to fix the amount of money in circulation.” Why do the Fed and other central banks focus on interest rates rather than on the money supply when conducting monetary policy?

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Macroeconomics

ISBN: 9780138102494

9th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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