Therefore, the objective of price stability
should be assigned to monetary policymakers, but the objective of high and rising living standards should not be.
The monetary policy strategy chosen by the Governing Council ensures a comprehensive assessment of the economic situation, of the size and nature of the shocks hitting the euro area, and of the related risks to price stability
A central bank's commitment to price stability
over the longer term, however, does not mean that the monetary authorities can ignore the short-term impact of economic events.
Yet he finds rising inequality in Florence in the period of price stability
between 1330 and 1427, and falling inequality in the United States in the inflationary years 1910-1970.
Putting a price tag on regaining price stability
may be impossible, but some economists have been bold enough to try.
Inflation is now back in positive territory and closer to the ECB's definition of price stability
, but core inflation remains on the low side.
The question "Is price stability
enough?" (White 2006) goes to the core of the problem.
First, I will explain why maintaining price stability
requires more than just keeping inflation low--it also requires keeping inflation expectations low and secure in the face of potential inflationary risks.
The Maastricht Treaty assigns the European Central Bank a clear mandate, namely to maintain price stability
. Because of the long and variable lags in the transmission of monetary policy to price developments, a central bank can only control inflation over the medium term.
The Bank of Japan will review its basic thinking on price stability
, and disclose a level of inflation rate that its Policy Board members currently understand as price stability
from a medium- to long-term viewpoint, in their conduct of monetary policy (''an understanding of medium- to long-term price stability
.'') Board members will conduct monetary policy in the light of such thinking and understanding.
"The Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability
," the Fed said in its press release for the March 22 meeting.