ABSTRACT
In the recent past (1954 to date) short-term interest rates in the United States have been relatively high and rising. During this period at least two changes in the American money market have occurred: the development and growth of the federal funds market; and the increase in the importance of nonfinancial corporations in financing government bond houses. In Section II these two evolved developments are described and examined, in Section III the implications of these particular changes for Federal Reserve policy are taken up, and in Section IV the implications for monetary policy of the expectation that money-market institutions will change are investigated.
