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Economic Commentary

Monetary Policy Debates Reflect Theoretical Issues

Can monetary policy act to stabilize the economy? Should policy attempt to do so? These questions have been the subject of considerable controversy during the last few decades. The continuing controversy reflects, in large part, the inability of economists to resolve theoretical issues surrounding the relationship between nominal variables, such as inflation and money growth, and real variables, such as output and employment.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Hoehn, James. 1986. “Monetary Policy Debates Reflect Theoretical Issues.” Federal Reserve Bank of Cleveland, Economic Commentary 5/1/1986.

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