The second was the instability of the relationship between money supply and the ultimate objective of policy such as inflation or nominal GDP. It was this second problem that was decisive in causing most countries to abandon monetary targeting as the basis of their monetary policies. By the mid 1980s, the problem of instability was coming to the fore.
On that occasion the countries affected found that the negative repercussions on their economy stemming from the generalised repricing of assets could not be mitigated through policy actions (either by relying on floating exchange rates or through capital flow management measures).