Article: FEDERAL RESERVE BANK OF KANSAS CITY EXECUTIVE DISCUSSES M2 POLICY

 
FEDERAL RESERVE BANK OF KANSAS CITY EXECUTIVE DISCUSSES M2 POLICY 
KANSAS CITY, Mo., Oct. 15 /PRNewswire/ -- The Federal Reserve may need to design a new framework for implementing monetary policy if M2 is found to be permanently unreliable as the principal policy guide. 
That's the view of Bryon Higgins, vice president and associate director of research at the Federal Reserve Bank of Kansas City. Higgins discusses the relationship of M2 growth to monetary policy goals in the current issue of Economic Review, the quarterly research journal published by the Kansas City Fed. 
His article, "Policy Implications of Recent M2 Behavior," argues that "the erratic behavior ...

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