Board of Governors of the Federal Reserve System

Replumbing Our Financial System: Uneven Progress PRELIMINARY Darrell Duffie∗ Stanford University March 17, 2012 Abstract The financial crisis of

Appendix 1: Materials used by Messrs. Sack, Tetlow, Croushore, and Rudebusch January 28-29, 2003 155 of 195 Exhibit 1 The Smoothness of the Federal

Months 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

months within a general framework of approximate price stability, that...month which would total perhaps as much as 1/2 billion dollars. Mr. Thomas

nine-month lows. Broad equity indexes are up 1-1/2 to 3-1/2 percent on...months combined, M2 and M3 grew at 6 and 5 percent rates respectively,

months, and the increase in business equipment also was strong. In February...months. The factory workweek, which jumped half an hour in January, remained

month. The index has shown relatively little movement since January, and...one-month gain during the past year. Increases were reported in most major

months of 1997 supported the hypothesis that some flows into liquid M2...months at an average rate of 11-1/4 percent. Banks' heavy deposit issuance

month. At the M3 level, declines in M2 were aug- mented by continued runoffs...month, growth of required reserves and total reserves fell to 4-1/2 and

month after meager expansion in March, bringing this aggregate down into...month, as net demands from abroad apparently turned negative on balance