From the end of 1984 through the middle of 1986, the monetary aggregate Ml growth rate has been extremely rapid by historical standards. The author argues that much of this rapid Ml growth reflects a transfer of funds out of banks' nonmonetary liabilities into banks' negotiable order of...

In recent years, the rules-versus-discretion debate over monetary policy has taken on new life. In the 1960s, this debate focused on the relative merits of nonactivist policies versus activist stabilization policies. When rational expectations arguments emerged in the 1970s, the debate broadened...