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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
unemplo .... Middle of paper
.... environments than they do when
inflation is persistently high. This evidence is a comparison across countries
over long periods. The association between economic performance, measured by
growth of output or growth of productivity, and inflation. This indicates a
negative relation; that is, the higher the inflation, the lower the rate of real
growth.
Evidence suggesting that low inflation promotes growth has motivated
recent decisions b ....
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Number of words: 901
Number of pages: 4 (approx. 250 words per double-spaced page)
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