Review

In recent years, existing definitions of the monetary aggregates have come under increasing attack. Initially, this assault stemmed from allegations that money demand had shifted in 1974 and that the conduct of monetary policy required new measures which were more closely related to the concerns of policy, such as total spending and prices.

Disappointment in recent domestic economic performance has sparked increasing interest in the role of the federal government in the U.S. economy. As it is widely believed that government deficits contribute to inflation, much of the public concern focuses on the size of the federal budget deficit and the growth of federal indebtedness.