Another problem with using the monetary aggregate M1 as the target for monetary policy was the uncertain impact of financial innovation, which weakened the relationship between M1 and other macroeconomic variables. 9  Crow (1988).
2  BIS Review 51/2003  These targets were aimed at gradually bringing the 12-month rate of inflation down to 2 per cent, the midpoint of the inflation-control target range, by December 1995.