"Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated, " the FOMC says.
In that case, rather than price stability, the sole goal of monetary policy should be dollar-price stability.
If the ECB is to fulfil its mandate of price stability, it must prevent prices falling.
One is to the bank's statutory independence in pursuit of its treaty-prescribed goal of price stability.
Unlike the Bank of England, for example, the ECB gets to write its own definition of price stability.
Again unlike its American and British counterparts, its statutory obligations relate only to the maintenance of price stability.
All this clearly goes far beyond the issue of price stability, which is the limit of the Bank's legal responsibility.
The Committee discussed the range of policy tools available to promote a stronger economic recovery in a context of price stability.
So, the best way for the Fed to create maximum employment is to focus on the single mandate of price stability.
Moreover, points out Mr Schubert, the mid-point of the inflation projection for 2002 is 1.9%, within the definition of price stability.
For four thousand years gold has been the Polaris of price stability.
Despite these headline negatives, the sector has performed very well in recent months, maintaining an element of price stability while continuing their double-digit dividend yields.
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The medium-term goal of price stability might be put at risk.
One can debate the specifics of the Ryan Bill, in particular its call for the Fed to base monetary policy on some measure of price stability.
The next Fed Chairman would do well to heed the memo's advice of "conducting monetary policy in a steady manner" with the principal goal of price stability.
For that matter, it is fair to ask whether the Fed should be promoting inflation at all, given its dual mandate of price stability and full employment.
The benefits of price stability, low and stable interest rates, an increase in high paying jobs and the spread of prosperity would redound to the benefit of all.
Although the pace of economic recovery is likely to be moderate for a time the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.
Conference on Trade and Development has taken a second look at the war on inflation and raised a concern: that governments may be needlessly sacrificing growth and jobs on the altar of price stability.
That he is prepared to contemplate such a significant weakening of the concept of price stability suggests that Mr. King fears politicians are already well on their way to "repatriating" control over monetary policy.
But it does not seem very likely, when the German finance minister keeps asserting the absolute necessity of price stability, and asserting that there is no "symmetry" between debtors and creditors in the eurozone.
The ECB, anxious to establish its credibility and build a reputation as a guardian of price stability, bristles at any attempt, whether from outside Europe, or from European political leaders, to tell it what to do.
Just wait and see, they asked the general public, telling them that as time passes, both unemployment and output would move back to levels at or around those consistent with their dual mandate of price stability and maximum employment.
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If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability.
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Mr. President, I commit today to you and to the American people that, if confirmed by the Senate, I will work to the utmost of my abilities -- with my colleagues at the Federal Reserve and alongside the Congress and the administration -- to help provide a solid foundation for growth and prosperity in an environment of price stability.
"To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve's holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities, " the FOMC says, adding it will continue to roll over the Federal Reserve's holdings of Treasury securities as they mature.
In theory, a discretionary central bank could limit the quantity of money and achieve long-run price stability by controlling the growth of nominal final demand.
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Or to put it another way, it turns out that this new stability in one form of prices, consumer price inflation, did not deliver broader stability.
This has created stability but at the price of a reign of fear.
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