Statement on Monetary Policy

Allan H. Meltzer

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Monetary Policy and Economic Impact Banking stability, regulation, efficiency Economic theories and models

Abstract

I last had the pleasure of appearing before this committee in February 1975 when the subject for discussion was the Senate Concurrent Resolution on Monetary Policy that soon became House Concurrent Resolution 133. In my statement urging the committee to adopt the resolution, I listed some benefits that I expected to follow adoption. The greatest benefit was expected to be a more stable monetary policy, and I expected that improvement to be achieved only if the Federal Reserve adopted procedures that looked beyond the problems of the money market to the longer-term effects of monetary policy operations.

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