tends to understate the value of money as an indicator for monetary policy. …

that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

of inflation targeting in 1992 or central bank independence in 1997), we instead take a longer perspective, which … alter the monetary base; and the adherence by policymakers in the 1960s and 1970s to nonmonetary views of the inflation …

expected inflation. The inability of the Fed to maintain a credible commitment to low interest rates in the face of increased … government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …