The Link Between M1 and the Monetary Base in the 198O's
Michelle R. Garfinkel and Daniel L. Thornton show that, under fairly general conditions, these changes should have made the link between M1 and the monetary base tighter in this decade, by eliminating or, at least, diminishing the importance of some sources of variability in that link. Garfinkel and Thornton present evidence that is consistent with their arguments.
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