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The monetary aggregates are not watched as closely as they used to be, one reason being that inflation has not been a major threat for a long time. Read more here.
Monetary aggregates thus may help to determine the appropriate policy, but only along many other variables and not in a way that would make them targets in the conduct of policy.
To shed some light on this debate, this Economic Letter investigates one aspect in which monetary aggregates can contribute to monetary policy, specifically, by providing better forecasts of future ...
Monetary aggregates, along with other indicators, can be used to provide information about these unobserved variables, though there is little theoretical or empirical ground to think that these ...
However, the analysis of monetary aggregates must not be the kind of “cookie-cutter” analysis done in the 1970s and 1980s.
Our monthly Monetary Watch, an Austrian take on where we are on the monetary inflation front and what’s next… Headline Monetary Aggregates for September The money supply aggregates based on ...
Annual growth rate of broad monetary aggregate M3 stood at 3.9% in May 2025, unchanged from previous month Annual growth rate of narrower monetary aggregate M1, comprising currency in circulation and ...
NOW accounts are included in M1 and other monetary aggregates. In 1982, the Garn-St Germain Act introduced money market deposit accounts (MMDAs), which were also free of interest rate ceilings, ...
Using the more traditional transaction money aggregate M1 – by then split into M1-a and M1-b – it appeared as if money growth had indeed come down; way down, substantially less expansion than ...
The quantitative theory of money — the idea that inflation in an economy depends on the quantity of means of payment in ...
Both fiscal and monetary policy affect aggregate demand. Fiscal policy impacts aggregate demand through changes in government spending, which indirectly impact consumer and investor spending, as well.
At a minimum, rather than relying solely on its Keynesian-inspired macro-economic model, it should also keep an eye on the wild swings that it is causing in the monetary aggregates.