... average inflation rates, an interest rate policy can improve the short run behavior of interest rates and prices The short run connections between money growth and inflation and interest rates are ... among interest rates, inflation rates, and money growth rates In particular, the U.S inflation of the 1970s and 80s can be fully accounted for by the corresponding increase in M2 (or M1) growth rates, ... variability of inflation and real growth rates But whatever they can tell us about high frequency movements in interest rates and inflation rates, these models contribute nothing to our understanding of...