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April 1972

Recent Monetary Growth

by Norman N. Bowsher

Monetary growth has been quite uneven since early 1971. On average, this expansion has been slower than in 1967 or 1968 but faster than in 1969 or 1970. Research at this Bank indicates that the trend rate of money growth is an important determinant of the rate of inflation and that marked and sustained changes in the rate of monetary expansion exercise an important short-run influence on output.