This paper re-examines the relationship between Treasury borrowing and monetary growth examined previously with annual data by Barro, Niskanen and Hamburger and Zwick. Our analysis, based on quarterly data, produces evidence of a positive and significant impact of total Treasury borrowing upon the growth of the monetary base for the 1954/I-1961/II and 1961/III-1974/IV periods but an insignificant coefficient for the Barro expenditure variable. When the coefficient instability during the 1961/III-1980/IV period is corrected by a dummy variable technique thy debt coefficient is positive and significant and remains stable for this two decade period.
