As you know, we take these hearings very seriously because they enable Parliament, through its representatives on the Committee, to question the Reserve Bank in depth and in public.
Problems with the narrow monetary aggregate M1 in the 1970s and 1980s led to increased interest at the Federal Reserve in the 1980s in broader aggregates such as M2. Econometric methods were also refined to improve estimation and to accommodate more-complex dynamics in money demand equations.