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Thus, considering all three goals, we see the goal of reducing inflation, stabilizing prices in conflict with the remaining two goals in the short term. Because in order to achieve the objective of reducing inflation, price stability, it must apply to tighten monetary policy. And so, in the short term can not perform the remaining two goals. Conversely, when the economy expanded, unemployment, economy overheating leads to increased inflation. . However, considering the long-term goals, they do not contradict each other. The relationship between unemployment reduction targets and economic growth objectives are not contradictory both in the short and long term. Most central banks have put price stability is the primary goal of monetary policy and long term. But in the short term, under political pressure, they may temporarily abandon mainly targets to curb unemployment ... The central bank can not simultaneously achieve all the goals in the short and often limit the central bank to pursue a long-term target and multi-target in the short term View full content
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