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<H1>Chapter 10 - Assignment 3: Velocity and Monetary Policy Rules</H1>
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<B>Questions:</B>
<P>Read Alan Greenspan's <A HREF="http://www.bog.frb.fed.us/boarddocs/speeches/19970905.htm">remarks at the 15th Anniversary Conference of the Center for Economic Policy Research at
Stanford University</A>.
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<LI>Why does Greenspan argue that a rule-based monetary policy would cause outcomes
that deviate from expectations?
</LI><LI>Use the quantity theory of money to explain why Greenspan argues that the introduction of
nationwide NOW accounts caused M1 to be less useful as a monetary policy target.</LI></OL>
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