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The bank suggests it is not really interested in economic growth or the business cycle just in price stability.
Extending work from the 1980s and 1990s to the present, we show that operational independence of central banks – the ability to choose an instrument to achieve inflation goals - has been associated with significant improvements in price stability.
The E.C.B. is concerned that becoming a lender of last resort could threaten its much prized price stability, but there's no point in price stability if the euro vanishes as a result.
None of this is startling, but it does suggest that Americans' belief in price stability is not as firmly anchored as the central bankers might wish.And the pressure is likely to increase.
He focused on the role this might play in price stability, and argued that central banks should ensure that the money rate of interest stays in line with the natural rate, defined as the marginal productivity of capital.
The Fed is interested in price stability, and what that means is that it's interested in making sure that the dollar you use to buy a bundle of goods today buys very nearly the same bundle of goods a year down the road.
Similar(50)
These stocks have played an important role in promoting price stability in world grain markets.
"You hear it in the last lecture and every day in between: price stability".
But in the decade to December 2001 it succeeded in achieving price stability by pegging its peso to the dollar, backed by a strict currency-board regime.
The fact that it was the first since the bank was made independent in 1997 is proof of its remarkable record in maintaining price stability since then.
In pursuing price stability, monetary policy can contribute to the gradual build-up of financial vulnerabilities through its effect on the degree of risk-taking in the economy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com