[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321231-105":59,"doc-detail-321231-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","economic-commentary-humphrey-hawkins-testimony-1985","ECONOMIC COMMENTARY - Humphrey-Hawkins Testimony 1985","","Economic commentary analyzes the Federal Reserve’s annual monetary growth targets announced through the FOMC, emphasizing how the Humphrey-Hawkins framework and related legislation structure semiannual congressional reviews. It explains the Equation of Exchange (MV=PQ) as a tool for linking money growth to price levels and real output, and discusses how policy emphasis shifted after 1979. The text reviews aggregate target ranges for 1984 and 1985, evaluates base drift effects, and argues that anti-inflation credibility depends on yearly target signaling despite successful disinflation.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/economic-commentary-humphrey-hawkins-testimony-1985/321231/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/economic-commentary-humphrey-hawkins-testimony-1985/321231.png","ImageObject",300,407,{"name":92,"@type":93},"Liam","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-27","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",12,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"What legislative process shapes the Federal Reserve’s monetary target announcements?","Question",{"text":113,"@type":114},"The text states that a representative of the Federal Reserve (usually the Chairman) must appear before congressional banking committees twice each year, with February hearings reviewing past performance and formally announcing current-year targets.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"How does the Equation of Exchange connect money growth to economic outcomes?",{"text":118,"@type":114},"The Equation of Exchange is presented as MV=PQ, linking the supply of money and money velocity to the price level and real output, and it is also approximated as m+v=p+q to evaluate policy effects on growth and inflation.",{"name":120,"@type":111,"acceptedAnswer":121},"Why did monetary targeting credibility weaken around 1977–1979?",{"text":122,"@type":114},"The document explains that M1 growth exceeded target ranges and that the practice known as “base drift” let misses from the previous year compound, reinforcing overshoots and eroding credibility by fall 1979.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},321231,1790099021,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},8796095461564,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","ECONOMICCOMMENTARY  \nIn February,the Chairman of the FederalReserve's Board of Governors made theannual announcement of the Federal OpenMarket Committee's(FOMC)currentmonetary growth targets.The FederalReserve began announcing annual targetsin 1975 in response to House ConcurrentResolution 133,and the practice wasrefined and formalized in the FederalReserve Reform Act of 1977 and in theFull Employment and Balanced GrowthAct of 1978(better knownas theHumphrey-Hawkins Act).  \nThis legislation requires a representative(usually the Chairman)of the FederalReserve to appear before Congressionalbanking committees twice each year.InJuly the Federal Reserve's monetarytargets for the current year are reviewed,and the preliminary objectives for thefollowing year are discussed.The Februaryhearings include a review of the FederalReserve's performance in the previousyear and a formal announcement of thetargets for the current year.  \nIn the decade that has passed since theFederal Reserve began to announce itsmonetary targets,little has changed inthe target-setting and reporting procedures,but we have seen a dramatic shift inpolicy emphasis and outcome.Before 1979,monetary growth had persistently ex-ceeded target ranges,and inflation andinflationary expectations were rising.Since 1979,however,the Federal Reservehas sought to restore price stability byreducing the annual growth rate of moneyover a number of years.  \nAlthough the selection of appropriatetarget ranges during a period of financialderegulation has been problematic attimes,the disinflationary policy of thepost-1979 period has been very successful.The Chairman's recent testimony suggeststhat the FOMC's monetary targets for1985 remain consistent with this anti-inflationary emphasis.  \nBut even after five years of successfuldisinflationary policy,many still watch thecurrent behavior of the Federal Reservefor clues to its policy priorities.Noinstitutional changes have been made toassure the public that a noninflationarypolicy will be pursued beyond the currentyear,so the Federal Reserve must alwaysseek credibility on the basis of each year'stargets.This places an inordinate emphasison money growth in a single year,sug-gesting that amulti-year targeting horizonmight improve the present policyreporting arrangements.  \n# The Equation of Exchange andMonetary Targets\n\nThe Equation of Exchange provides aframework for evaluating the relationshipbetween monetary targets and the broadereconomic goals of Federal Reserve policy-makers.The Equation of Exchangerelates the level of prices and economic  \nThe 1985  \n# Humphrey-HawkinsTestimony\n\nBy Michael R.Pakko  \nactivity to the supply of money in theeconomy:MV=PQ.In this form,themoney supply(M)times the income velocityof money(V)is equal to the price level(P)times real output(Q).Velocity isdefined by the equation as the ratio ofnominal output to money,and can bethought of as a measure of the turnover  \nrate of money in the economy.  \n\n| Table 1 Monetary Targets in 1984  \u003Cbr>and 1985  \u003Cbr>Annual percent change  \u003Cbr>fourth quarter over fourth quarter  \u003Cbr>1985  \u003Cbr>1984  \u003Cbr>1984  \u003Cbr>Aggregate  \u003Cbr>Targets  \u003Cbr>Actual  \u003Cbr>Targets   |\n| --- |\n| 5.2  \u003Cbr>M1  \u003Cbr>4 to 7  \u003Cbr>4 to8  \u003Cbr>6 to 9  \u003Cbr>7.7  \u003Cbr>M2  \u003Cbr>6 to 9  \u003Cbr>6to 9.5  \u003Cbr>M3  \u003Cbr>6 to 9  \u003Cbr>10.4   |\n| SOURCE:Board ofGovermnors of the Federal  \u003Cbr>Reserve System.   |\n\nIn the form of growth rates,the equation  \ncan be approximated as m+v=p+q,where the lower case letters indicaterates of change for the variables.Sinceeconomic policy makers are primarilyinterested in economic growth and inflation(price level changes),this form isappropriate for evaluating policy.  \nWhile monetary growth may affect realeconomic growth in the short-run,it isgenerally agreed that,within reasonablelimits,these short-term effects aretransitory.Average real growth over longerperiods is independent of short-run moneysupply fluctuations.Inflation,on the  \nother hand,is closely related to monetarygrowth over the","cbCaifzVb76xYWC2","https://ap.wps.com/l/cbCaifzVb76xYWC2","pdf",1510340,"English","# The Equation of Exchange and Monetary Targets\n## Humphrey-Hawkins Testimony\n## A Decade of Monetary Aggregate Targeting","[{\"question\":\"What legislative process shapes the Federal Reserve’s monetary target announcements?\",\"answer\":\"The text states that a representative of the Federal Reserve (usually the Chairman) must appear before congressional banking committees twice each year, with February hearings reviewing past performance and formally announcing current-year targets.\"},{\"question\":\"How does the Equation of Exchange connect money growth to economic outcomes?\",\"answer\":\"The Equation of Exchange is presented as MV=PQ, linking the supply of money and money velocity to the price level and real output, and it is also approximated as m+v=p+q to evaluate policy effects on growth and inflation.\"},{\"question\":\"Why did monetary targeting credibility weaken around 1977–1979?\",\"answer\":\"The document explains that M1 growth exceeded target ranges and that the practice known as “base drift” let misses from the previous year compound, reinforcing overshoots and eroding credibility by fall 1979.\"}]","ECONOMIC COMMENTARY - Humphrey-Hawkins Testimony 1985 | PDF",1789958742,13]