A policy rule can be activist; the distinction between rules and discretion depends on the stage at which optimization calculations enter the policy process. Here a specific monetary rule is proposed, one that sets the monetary base each quarter in a manner designed to keep nominal aggregate...

The Federal Reserve has been announcing target ranges for the growth of M1 and other monetary aggregates since 1975. In “Base Drift and the Longer Run Growth of M1: Experience from a Decade of Monetary Targeting,” Alfred Broaddus and Marvin Goodfriend discuss a technical aspect of the...

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In February of this year, the Federal Reserve Board changed the rules by which banks’ required reserves are calculated; the previous system of lagged reserve requirements was replaced by contemporaneous reserve requirements (or CRR). According to the Board, the new reserve accounting system will...