This is econ330 The Economics of Money Banking and Financial

This is econ330. \"The Economics of Money, Banking and Financial Markets Eleventh Edition\"

CHAPTER 3: Measurement of Money and the Federal Reserve Bank:

Explain the following statement “The different measures of money tell a very

different story about the results of monetary policy in recent years.”

Solution

This tells us the value of all the goods or other service terms that are used to measure the money aren\'t the same and this is because there can be a lot of variations both in the demand as well as the supply of that particular good which indeed makes it quite difficult to measure in accurate terms and that is the reason why there are different results of monetary policy in the recent years.