![]() ![]() ![]() Towards the end of his life, Friedman expressed doubt about the validity of targeting the quantity of money. The Fed's inability to meet its money supply targets from 1978–1982 has led some to conclude it is not a feasible alternative to more conventional inflation and interest rate targeting. There is debate about the effectiveness of a theoretical money supply targeting regime. The proposal to constantly grow the money supply at a certain predetermined amount every year has become known as Friedman's k-percent rule. He favored a system that would automatically buy and sell securities in response to changes in the money supply. Friedman believed that the Federal Reserve System should ultimately be replaced with a computer program. He was opposed to Federal Reserve policies, even during the so-called 'Volcker shock' that was labeled 'monetarist'. ![]() Although Friedman concluded the government does have a role in the monetary system he was critical of the Federal Reserve due to its poor performance and felt it should be abolished. ![]()
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