"Federal Reserve chairman Paul Volcker essentially eliminated M1 as a target indicator. His successor, Alan Greenspan, eliminated M2. On the other hand, in the past year or two, Greenspan has said on various occasions that maybe we should reconsider using M2. The trouble is that all these measures of money cannot be relied on because the velocity of money changes. It is quite unstable."
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People from New JerseyEconomists from the United StatesLutherans from the United StatesChairs of the Federal Reserve
Original Language: English
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Sources
Lawrence Klein, "Keynsianism Again: Interview with Lawrence Klein", Challenge (May-June 2001)
https://en.wikiquote.org/wiki/Paul_Volcker
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Paul Volcker
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