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A mandate for price stability

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  • Robert L. Hetzel

Abstract

The Neal Resolution, now in Congress, would make price stability the dominant goal of monetary policy. The first of these two articles holds that policymakers discretion over the price level increases political conflict. Further, it argues that removing this discretion would restore the dollar to the role envisioned by the Framers of the Constitution. The second article proposes an instrument for measuring inflation expected by the market and argues that such a measure would encourage monetary policy-makers to maintain price stability.

Suggested Citation

  • Robert L. Hetzel, 1990. "A mandate for price stability," Economic Review, Federal Reserve Bank of Richmond, vol. 76(Mar), pages 45-53.
    • Handle: RePEc:fip:fedrer:y:1990:i:mar:p:45-53:n:v.76no.2
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    File URL: https://fraser.stlouisfed.org/files/docs/publications/frbrichreview/rev_frbrich199003.pdf
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    References listed on IDEAS

    as
    1. Martin Feldstein & Lawrence Summers, 1983. "Inflation and the Taxation of Capital Income in the Corporate Sector," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 116-152, National Bureau of Economic Research, Inc.
    2. Martin Feldstein & Joel Slemrod, 1983. "Inflation and the Excess Taxation of Capital Gains on Corporate Stock," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 101-115, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Mark A. Wynne, 1999. "The European system of central banks," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q I, pages 2-14.

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