Expert: Docs99 - 8/1/2009

Question
Why did the fed switch it's focus from interest rates, such as the federal funds rate, to target the volume of bank reserves consistant with desired growth rates on monetary aggregates ?

Answer
http://www.historycommons.org/context.jsp?item=USFedResTtgMonSup
Hope this helps. It is really complicated. The Carter years saw inflation and double digit nominal interest rates. The banks were overextending themselves overseas. Volker was the strong hand on the Fed. Hope this helps. Thanks for your query.