Price stability a key long term objective

PRICE stability should be viewed in a long-run context as an ongoing goal, not a one-time objective, the president of the New…

PRICE stability should be viewed in a long-run context as an ongoing goal, not a one-time objective, the president of the New York Federal Reserve Bank, Mr William McDonough, told a gathering in Dublin last night. Addressing the Society of Investment Analysts, Mr McDonough said monetary policy should be oriented beyond its immediate or short-term impact on inflation and the economy. The focus should be on inflation expectations over the long term, which was more appropriate for most savings and investment decisions.