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The Federal Reserve used the M1 monetary aggregate as a target, but found it difficult to control since many people withdrew money from their bank

The Federal Reserve used the M1 monetary aggregate as a target, but found it difficult to control since many people withdrew money from their bank deposit accounts and bought money-market mutual fund shares (which earned them higher rates of return, were reasonably low-risk (but not guaranteed), and permitted investors to write a limited number of checks against their balances each month). Which measure of the money stock should they have targeted and why?

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