The Failure of the Quantitative Measurement of the Money Supply

The U.S. Federal Reserve is trying to keep the money supply growing at a rate of 6%. But Paul Volcker, who was chairman in 1980s, didn't see this as an effective tool for controlling inflation. The Fed and its research department were looking at simple sum numbers instead of divisia measures. That's because some things like money market funds had very little moneyness when they were paid high interest rates.