...and price stability.
The dual mandate of the Fed has been oft-criticized for its "having its cake and eating it too" panglossian view.
The largest problem in my view is the time lags between the two mandates. Price stability is largely a mechanical problem that involves policy instruments entirely different from the more politically charged issue of full employment.
We are observing in real time the ramifications of these parallel lines.
Thursday, October 21, 2010
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