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Economic Commentary

The M1 Target and Disinflation Policy

To regulate the nation's money supply, the Federal Reserve System sets target ranges for three measures of money, which are designated M1, M2, and M3. Although there are three different monetary targets, academic researchers and the public focus primarily on the M1 measure, which is announced on a weekly basis. Researchers find it most useful in academic pursuits. The public considers M1 useful for monitoring the Federal Reserve's monetary policy and for predicting the future effects of monetary policy on inflation and interest rates.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Gavin, William T. 1985. “The M1 Target and Disinflation Policy.” Federal Reserve Bank of Cleveland, Economic Commentary 10/1/1985.