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.