Moreover, this relationship was subject to sizable downward shifts in the demand for money. Such shifts did indeed occur. Thus, after a period of disinflation between 1975 and 1978, inflation picked up 1 again in 1979–82 despite the achievement of the M1 target.
Because of the lack of longer-term success in bringing down inflation, this approach to monetary policy was unable to build confidence and understanding on the part of the public. The second policy approach took place from 1982-90, a period in which there was no clear monetary policy target.