Controlling inflation stabilises growth

Monetary policy's dual objectives - stabilising inflation and stabilising economic activity - complement rather than contradict one another, said Frederic Mishkin, a governor of the Federal Reserve.

"Because monetary policy has not one but two objectives, it might seem obvious that those objective would usually, if not always, conflict," Mishkin said. "As so often occurs with the obvious, however, the impression turns out to be incorrect."

Mishkin cited several economic research papers which

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