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Economic Commentary

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 paper and its data are subject to revision; please visit for updates.

Suggested Citation

Hoehn, James. 1988. “Stable Inflation Fosters Sound Economic Decisions.” Federal Reserve Bank of Cleveland, Economic Commentary 5/1/1988.

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