Monetary policy should have only the single goal of price stability because it cannot influence real variables in the long run or fine-tune the cycle, and by pretending it can do more it introduces uncertainty into the world; other levers (tax rates, etc.) should handle the real economy.

normativepending

Speaker

Michael Belongia

Evidence Quote

the only thing that monetary policy can deal with is price stability

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

My Notes

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