Stable Inflation Fosters Sound Economic Decisions
How should monetary policy use its control over money and prices to influence employment and output? Under a policy to stabilize inflation, people can more easily make sound production and consumption decisions, and economic activity will tend to vary appropriately with changes in productive opportunities.
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 work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.