Defending zero inflation: all for naught

Economists and policymakers disagree on the lengths central banks should go in pursuit of price stability and, in fact, on exactly what price stability means. This essay advocates that central banks try to maintain stable price levels in their countries, and it argues that the benefits of achieving this objective are worth the transition costs. The essay reviews some of the relevant academic literature on the economic effects of inflation and specifically addresses the issues of transition cost, fiscal dominance, and credibility.Inflation (Finance)

Some observations on central bank accountability

An analysis of the institutional design of the Federal Reserve System, stating that the central bank should be given a clear legislative mandate to achieve price-level stability and financial market efficiency, along with the independence and accountability necessary to realize these goals.Banks and banking, Central ; Federal Reserve System - Independence

Price stability and regional diversity

An argument against using short-term monetary policy to alleviate regional economic shocks and an analysis of how regional economic diversity lends strength to the goal of price stability as the Federal Reserve System's sole monetary policy focus.Monetary policy - United States ; Regional economics

Price stability and world economic recovery

An assertion that central banks can promote long-term investment and stable economic growth only by guaranteeing price stability and that a coordinated global easing of monetary policies would damage central-bank credibility and jeopardize progress against inflation.Monetary policy ; Prices ; Banks and banking, Central

A monetary policy for the 1990's

An argument that the Federal Reserve could improve the performance of the economy by committing to the long-term goal of price stability and by announcing a time frame within which to achieve it. The author explains his support of House Joint Resolution 409, which would mandate making price stability the major goal of Federal Reserve monetary policy.Monetary policy ; Federal Open Market Committee

The case for price stability

The testimony of Cleveland Federal Reserve Bank President W. Lee Hoskins before the U.S. House of Representatives' Subcommittee on Domestic Monetary Policy, supporting House Joint Resolution 409, which would establish achievement of price stability as the primary policy goal of the central bank.Monetary policy ; Price regulation

A European system of central banks: observations from abroad

A proposal for establishing price stability as the sole objective of a European system of central banks.European currency unit ; Monetary policy

Views on monetary policy

Banks and banking, Central ; Monetary policy ; Prices

A critique of monetary protectionism

An argument against attempts to achieve current-account objectives through monetary manipulation of nominal exchange rates, with an explanation of why such tampering--which for various reasons might appear politically attractive--ultimately harms economic welfare.Foreign exchange - Law and legislation ; Monetary policy

Price Stability: The Policy and Research Perspectives

Policy; Prices