The share of AMD deposits in the total monetary stock
was 27% or 387.
2] = 0 (as time breaks the links between real and nominal variables), Equation (3) states that the Fed will issue enough monetary stock
through its short-run FFR operations to affect the interest rate (where the Fed will issue increased currency to lower the short-run rate) but with an eye to facilitate the needs of a prospective long-run rate as in the neutral regime--with all the difficulties that accompany pursuing both policies simultaneously.
He also expressed concern about an increase in indirect taxation as well as the dangers related to ana increase im monetary stock
This deterioration of the monetary stock
was magnificently described by Milton Friedman and Anna Schwartz in their Monetary History of the United States more than 40 years ago.
It has revised its monetary policy operating strategy to put more weight on changes in the price level and less weight on the monetary stock
, which will better enable it to keep its eye on the ball.