What is the goal of Moentary policy? It should be price stability according to Fed Governor Edward Gramlich who made his views known in a recent speech at the ASSA conference (AKA the AFAs) in Washington DC. “The long-run anchor is clearly price stability. Following Milton Friedman, inflation in the long run is a monetary phenomenon, as is deflation. Hence, the long-term goal of the Fed is to keep prices stable by some definition, avoiding either inflation or deflation.” [FinanceProfessor Annotation]
Content: Article
Author: Edward M. Gramlich
Source: The Federal Reserve Board
Subjects: Economics, Finance
Author: Edward M. Gramlich
Source: The Federal Reserve Board
Subjects: Economics, Finance
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