Robert Leeson,

Those of us who keep track of recent
empirical work realize that the empirical
relationship between the supply of money
and the price level, indeed between the
supply of money and nominal GDP, more or
less broke down in the 1980s in the US and
much of the rest of the world.  Even Milton
Friedman accepted that this was the case
last summer before he died, and it has been
some time since any central bank targeted
money supply as a serious policy variable.
Rather they pretty much all focus on Keynes's
variable, the rate of interest.

Barkley Rosser