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Money Growth and Inflation

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One of the Federal Reserve’s principal objectives in conducting monetary policy is to maintain low inflation. The Fed’s main instrument for achieving that objective is its control of the nation’s money supply. To the extent that there is a strong link between inflation and money supply growth, the low-inflation objective can be readily achieved.

Suggested citation: "Money Growth and Inflation," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-07, pp. 04-05, 07.01.1999.

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