Is There Something Wrong With M Two?

In the late 19 eighties, m two stopped growing and actually ground to a halt. This should have produced a massive deflationary shock in the us. But the economy kept going as if nothing had happened. And so not just in late 19 eighs, we saw the same thing happen in 19 seventies with m one. So what greenspan was saying, a rational exuberance, was we're using the wrong m. The economy is using other monetary forms that we don't really have a good handle on. We can't use the monetary system to gauge whether or not we're actually being successful. That's terly the message here. If central banks stop being central banks