Friday, March 31, 2017

"... is usually interpreted as ..."

From The Fed's Dual Mandate: Lessons of the 1970s, a message from James Bullard:

When the U.S. Congress amended the Federal Reserve Act in 1977, it essentially gave the Fed a dual mandate: to promote maximum sustainable employment and price stability. Price stability is usually interpreted as low and stable inflation...

Price stability may be "interpreted" that way, but low and stable inflation is NOT the same as price stability.

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