In the several years up to the middle of last fall, the Federal Reserve was increasing the stock of money of the nation inordinately. This rapid growth of money has been the major cause of rapid and increasing inflation and reduction in the rate of growth of money was long overdue in order for...

The Federal Reserve has had an objective of increasing the money stock (M1B) since late 1979 at a rate between 4 and 6 1/2 percent per annum (mid-range 5 1/4 percent). This has been in contrast with an average rate of 7 1/2 percent per annum over the preceding four years. This objective was well...