The Proposed Redefinitioin of Monetary Aggregates
My comments on "A Proposal for Redefining the Monetary Aggregates,11 (Federal Reserve Bulletin January 1978) takes the form of three separate statements. One is the statement adopted by the Shadow Open Market Committee on March 11. The second is a criticism of the computation of the monetary base as currently defined and published in Washington* The criticism is excerpted from a weekly letter written by H. Erich Heinemann, a Vice President of Morgan Stanley and Company. The third was written by Jerry L. Jordan, former director of research at the Federal Reserve Bank of St. Louis and currently a Senior Vice-President at Pittsburgh National Bank. I have included the statements by Heinemann and Jordan not only because I regard them as correct, but because they present the positions of two knowledgeable users of monetary data.