Recent Behavior of Base Velocity

The Federal Reserve is back with its usual claim that the demand for money shifted in 1982. The alleged shift is used to justify a return to the money growth rates typical of the middle, and late seventies, the Burns and Miller years of highly inflationary monetary policy. This time the claim seems more substantial, or at least is more obvious to the naked eye, so it has been treated as an established fact by Wall Street and Washington.