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Economic Commentary

Why Is Stable Money Such a Big Deal?

What do attempts to counterfeit an enemy’s currency during wartime have in common with decisions to adopt another country’s currency during peacetime? Both are inspired by the power of a stable monetary standard and, conversely, the consequences of losing it. Both illustrate why preserving the value of the nation’s currency is a central bank’s most important responsibility. This Commentary is based on a speech given (jointly with Mike Bryan) to the Cleveland City Club New Leaders group on February 19, 2002.

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 for updates.

Suggested Citation

Altig, David. 2002. “Why Is Stable Money Such a Big Deal?” Federal Reserve Bank of Cleveland, Economic Commentary 5/1/2002.