The level at which these forces are most evident is at that of broad aggregates and long time spans.
From my 1998 paper on the subject (pdf): The point is important and bears repeating: under liquidity trap conditions, the normal expectation is that an increase in high-powered money will have little effect on broad aggregates … Nor was it just theory.
It clarifies that this notion is largely based on official urban/rural statistics that capture only broad aggregates, and that this average child does not actually exist.
Their platforms are broad, aggregating opposing positions on dozens of issues, nearly assuring that neither party fully aligns with any citizen's views.
The large, broad aggregate peak centered at 1.4 Å−1 has contributions from the weakly ordered/aggregated PCBM and possibly (PCB 2C2, as well as from the amorphous regions of PCDTBT.
Complications also arise when aggregating from the fine level of detail in tariff schedules up to the broader commodity aggregates that allow an overall evaluation and comparison with protection regimes in other countries.
But the relationships between the monetary base, broader monetary aggregates and nominal income is highly unstable.Central banks have mostly given up trying to target inflation via the money supply.
I guess I haven't said that clearly, although it's implicit in my old Japan paper (pdf), where I do state clearly the point that in the liquidity trap the central bank, while it can control the monetary base, generally can't control broader monetary aggregates.
Greenspan also helped deregulate the broader monetary aggregates: M2, MZM, and M3 (the broadest measure of money).
Admittedly, the Fed's control over the broader monetary aggregates has become quite attenuated, for reasons elucidated below.
