4 ms·
The Fed does not target the monetary aggregates. Its impossible. They target interest rates, that is, the price of money, by buying and selling treasury securi
by bubbleRefuge 3y ago
The Fed does not target the monetary aggregates. Its impossible. They target interest rates, that is, the price of money, by buying and selling treasury securities and by paying interest on reserves. If they were to target monetary aggregates they would be unable to target interest rates.