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...

The paper analyzes the need for financial regulations in the implementation of central bank policy. It emphasizes that a central bank serves two functions. Central banks function as monetary authorities, managing high-powered money to influence the price level and real activity; and they engage...

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Monetary theory and policy have been revolutionized in the two decades since October 1979, when the Federal Reserve under the leadership of Paul Volcker moved to stabilize inflation and bring it down. On the side of practice, the decisive factor was the demonstration that monetary policy could...

An abstract for this article is not available.