TY  - JOUR
AU  - Friedman,Benjamin M.
TI  - Lessons from the 1979-1982 Monetary Policy Experiment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1272
PY  - 1984
Y2  - November 1984
UR  - http://www.nber.org/papers/w1272
L1  - http://www.nber.org/papers/w1272.pdf
N1  - Author contact info:
Benjamin M. Friedman
Department of Economics
Littauer Center 127
Harvard University
Cambridge, MA  02138
Tel: 617/495-4246
Fax: 617/495-7730
E-Mail: bfriedman@harvard.edu
AB  - The experience of U.S. monetary policy during 1979-82 provided useful and potentially important new evidence about how monetary policy affects economic activity. This paper considers, inthe light of that evidence, six familiar propositions supporting the use of monetary aggregate targets for monetary policy. These propositions deal with money and nominal income, with price inflation and real economic growth, and with long-term interest rates. The evidence from the1979-82 experiment leads to doubt rather than confidence in each of these six propositions, and hence doubt rather than confidence in the use of monetary aggregate targets.
ER  -