[ari-freedom]

I don’t put too much stock in monetarism

‘The use of quantity of money as a target has not been a success.’ He (Milton Friedman) added: ‘I’m not sure I would as of today push it as hard as I once did.’ (Financial Times, 7 June 2003).

[ThePythonicCow]

The use of quantity of money as a target has not been a success.

Actually, once the Fed target rate got down to 2 percent, I suspect the Fed switched from targeting a rate, to targeting the quantity of MZM (Money of Zero Maturity).

When the economy is humming along in an apparently more healthy state, it makes sense to target the Fed funds rate.

In times of severe distress, it makes more sense to target the quantity of money.