Monetary Policy and the M2 Target
As 1989 comes to an end, the levels of nominal GNP and the M2 aggregate seem to be in balance, as M2 growth has slowed to a 4 to 5 percent range in the past three years. The Federal Reserve’s tentative target range for M2 growth in 1990 permits ample opportunity for the inflation rate to decline in the next few years.
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