Date of Original Version



Conference Proceeding

Abstract or Description

THREE QUESTIONS recur frequently in current discussions of monetary policy: (1) Can the Federal Reserve control the stock of money if it chooses to do so? (2) What are some main consequences of choosing the stock of money as opposed to some other variable as the focus of control? (3) Which stock of money can be controlled best; or stated in another way, how should we define and measure the stock of money that is to be controlled?