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October 1971

Slowing in Money Growth: The Key to Success in Curbing Inflation

by Keith M. Carlson

The role of monetary actions in the administration's new economic program has received little emphasis. Controlling inflation is an important objective of the program, vet a course for monetary actions has not been proposed. Historical experience in the United States and other countries indicates that the rate of inflation is related very closely to the trend rate of monetary expansion.