Review

John A. Tatom examines the effects of newly authorized money market deposit accounts and super-NOW accounts on monetary aggregate measures and monetary policy. He describes the conventional view that these new accounts have distorted M1 and its interpretation while leaving M2 and its policy usefulness virtually unaffected.

R. W. Hafer and Scott E. Hein investigate the Federal Reserve’s ability to control closely the stock of money. The authors examine this issue by simulating money growth for 1982 using two alternative control procedures.

Donald M. Brown investigates whether performance studies actually are capable of identifying performance differences among banks and, hence, whether they are relevant to policy decisions about bank holding company acquisitions.