Late in 1982, the growth of the money supply (MI) accelerated sharply while nominal GNP growth declined. The ratio of GNP to MI is refereed to as the "income velocity of money" and the inverse of velocity is the "demand for money." So when income growth slowed while money growth increased, it...

There are no good monetary policy options. Since policymakers must choose between alternative policies with undesirable consequences, there is no reason to assume that a single option will be selected and adhered to. Rather, policies will continue to alternate between "spurts" of monetary growth...

The course of the economy this year may have detoured slightly, but has not been derailed by the crisis in Middle Eastern deserts. The U.S. economy was already flirting with recession before Iraq invaded Kuwait. The short-run effects of the invasion create the worst of all worlds from the...

The risk of recession in 1988 has diminished significantly since the end of last year. Since the SOMC meeting last September, two developments posed a possible risk to continued economic expansion in 1988: First, the stock market crash of October 19 was thought by some observers to have severely...

Adopting a restrictive policy to reduce inflation and being willing to stick with it even in a long and deep recession is not evidence that it will be successful. The test of whether a long-run anti-inflation policy will be maintained does not occur until the subsequent expansion gets underway....

How can Mexico best achieve a stable standard of value and, hence, sound money? Mr. Jordan, president and chief executive officer of the Federal Reserve Bank of Cleveland, explored this question in his address to the DUXX Graduate School of Business Leadership at its Forum on Public Policy in...

An explanation of how Mexico could further enhance its recent economic progress by implementing the provisions of NAFTA--unilaterally, if necessary--and by following through on its initiative to make its central bank autonomous.

In a speech at the Cato Institute, Jerry L. Jordan, President and CEO of the Federal Reserve Bank of Cleveland, discussed the forces shaping the emerging global monetary order and offered guidelines for the design of any international organization promoting efficient international financial...

An examination of the role of sound money in promoting national prosperity, emphasizing the hazards that emanate from fiscal policies and the challenges that will accompany the European Monetary Union.

Financial crises typically arise from mismanagement by governments which seek, usually with the most sincere and honorable intentions, to reduce or eliminate some constituent's risk exposure. But risk cannot be eliminated, only redistributed. Mr. Jordan, president and chief executive officer of...