It thus establishes an year-over-year growth for M2 within the 18.7-11.7 percent range for December 2007. Moreover, M2 is projected to grow below the expansion of nominal GDP. A deceleration in the growth of other monetary variables, such as private sector M2 and currency in circulation, is also expected.
Senator Owen, like Mr. Phillips, recognized the importance of having the central bank of the United States tied directly to America’s Main Streets and not isolated in Washington or on Wall Street. That structure is at least as important today as it was a century ago.