A Monetary Policy for the 1990s
Lack of credibility and predictability in the monetary policy process can result from a perception of vagueness about the ultimate objectives of policy and the steps that will be taken to correct deviations from economic goals. Rather than providing more information about the current policy process, 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.
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