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Conflicting Goals In Economic Growth
Beginning of paper
Goals of monetary policy are to "promote maximum employment, inflation
(stabilizing prices), and economic growth." If economists believe it's possible
to achieve all the goals at once, the goals are inconsistent. There are
limitations to monetary policy.
The term "maximum employment" means that we should try to hold the
unemployment rate ....
Middle of paper
....her the inflation, the lower the rate of real
growth.
Evidence suggesting that low inflation promotes growth has motivated
recent decisions by a number of central banks and governments, most notably New
Zealand. Canada, the United Kingdom and Sweden also have moved in recent years
to establish monetary policy with official low inflation ta.... |
| Word count: 901 |
Page count: 4 |
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