>After all, what exactly is being measured by this? Purchasing power of Americans. >how does measuring prices account for how much M0 money there is? Why doe

>After all, what exactly is being measured by this? Purchasing power of Americans. >how does measuring prices account for how much M0 money there is? Why does it need to? On its own, the amount of M0 is irrelevant. We care about how the effects of supply manifest in prices.