[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-325419-105":59,"doc-detail-325419-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","a-perspective-on-monetary-policy-acting-systematically-and-transparently","A Perspective on Monetary Policy - Acting Systematically and Transparently","","Monetary policy should be guided by two tenets: maintaining price stability and improving central bank effectiveness through systematic, transparent actions. Price stability is presented as a primary objective that supports better long-term economic decisions and overall economic welfare. Central banks can strengthen public understanding by anchoring inflation expectations, acting predictably, and using credibility to manage unusual circumstances. The text also explains how the FOMC worked informally to influence inflation expectations over time.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/a-perspective-on-monetary-policy-acting-systematically-and-transparently/325419/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/a-perspective-on-monetary-policy-acting-systematically-and-transparently/325419.png","ImageObject",300,407,{"name":92,"@type":93},"Maeve","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-29","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":52},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What are the two tenets that should guide monetary policy?","Question",{"text":112,"@type":113},"The text argues for (1) price stability to enhance economic welfare and (2) central banks acting systematically and transparently.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why does price stability matter for economic welfare?",{"text":117,"@type":113},"Price stability creates an environment where people can make better long-term economic decisions, supporting optimum performance of the overall economy.",{"name":119,"@type":110,"acceptedAnswer":120},"How does the FOMC help anchor inflation expectations?",{"text":121,"@type":113},"It relies on credibility built through consistent communication and actions, conditioning the public to regard low inflation as credible and discouraging unwelcome disinflation.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},325419,1790465519,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":52,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},5909877438554,"https://ap-avatar.wpscdn.com/avatar/5600025385ad2bf12a7?_k=1778553567797529272","by Sandra Pianalto  \nThis afternoon 1 willfocus on twotenets that Ibelieve should guidemonetary policymakingFirst,I amconvinced that price stability enhanceseconomic welfare by creating an envi-ronment in which people can makebetter decisions-decisions that areconducive to long-term economicgrowth and stability.  \nSecond,I think that central banks canbe more effective when they act sys-tematically and transparently.In myremarks,I will talk about the behaviorsthat have made the FOMC successfulin this regard.  \nFinally,I will conclude with a fewremarks about the current state of theeconomy and monetary policy.  \n# ■ Price Stability EnhancesEconomic Welfare\n\nLet me start with my first tenet:pricestability enhances economic welfare.ndeed,I regard maintaining price sta-bility as essential for optimum perfor-mance of the overall economy.That iswhy price stability is a primary objec-tive of monetary policy.  \nUnder the leadership of my prede-cessors,the Federal Reserve Bank ofCleveland established a strong commit-ment to the primacy of price stability.These leaders saw the pursuit of pricestability as the key to achieving themost favorable outcomes for sustain-able economic growth.  \nTheir position,that the FOMC shouldestablish a policy of \"zero inflation,\"or price stability as it became known,seems much more reasonable today.Back then,though,their perspectivewas viewed as radical.The conflictarose because some people thought that  \n# A Perspective on Monetary Policy\n\nprice stability and economic stabiliza-tion were not compatible goals.  \nAlthough price stability has been anexplicit objective of monetary policysince the earliest Congressional man-date in 1946,the benefits of pricestability were not widely appreciateduntl more recently.Today,monetarypolicymakers routinely talk about thepositive benefits gained from achievingprice stability.  \nMoreover,I believe that it is nowwidely recognized that sustained infla-tion—or deflation for that matter—is amonetary policy phenomenon.In otherwords,I think the Federal Reserveowns the sole responsibility for achiev-ing and maintaining price stability inthe United States.  \n## ■ Acting Systematically andTransparently\n\nLet me turn to my second tenet:central banks can be more effectivewhen they act systematically and trans-parently.Only then will the publicunderstand how to interpret individualpolicy actions.  \nI will elaborate on three behaviors thatI believe have made the FOMC moresystematic and transparent:  \n·Anchoring inflation expectations,  \n·Acting predictably,and  \n·Drawing on credibility to deal withunusual circumstances.  \n## ■Anchoring InflationExpectations\n\nFirst let me address the idea of anchor-ing inflation expectationsEconomistsand policymakers today agree thatexpectations play a key role in inflationdynamcs.People who act on mistaken  \nMay 1,2004  \nSandra Pianalto is the president andchief executive officer of the Fed-eral Reserve Bank of Cleveland.ThisCommentary contains the text of herremarks to the Forecaster's Club ofNew York on April 22,2004.  \nbeliefs about future inflation makedecisions that they may later come toregret.Because central banks controlthe trend rate of inflation over time,itseems natural for central banks to doeverything they can to inform thepublic about the trend rate of inflationand to convince the public to regardthe information as credible.  \nThe FOMC did not have a formal,numerical inflation target as it set aboutto achieve price stability two decadesago,and it does not have such a targettoday.I think that the FOMC infor-mally set an upper-limit guidepostfor inflation after the turbulent 1970s.when inflation was very high and vari-able.The decade of the 1980s broughta definite improvement,with core infla-tion fluctuating in the neighborhood of4 to 5 percent.  \nDuring the 1990s,the FOMC paidclose attention to managing inflationexpectations.Chairman Greenspan andother Committee members talked regu-larly about their commitment to achiev-ing price stabili","cbCaibu4y3xIsgif","https://ap.wps.com/l/cbCaibu4y3xIsgif","pdf",1212103,"English","# Price Stability Enhances Economic Welfare\n## Acting Systematically and Transparently\n## Anchoring Inflation Expectations","[{\"question\":\"What are the two tenets that should guide monetary policy?\",\"answer\":\"The text argues for (1) price stability to enhance economic welfare and (2) central banks acting systematically and transparently.\"},{\"question\":\"Why does price stability matter for economic welfare?\",\"answer\":\"Price stability creates an environment where people can make better long-term economic decisions, supporting optimum performance of the overall economy.\"},{\"question\":\"How does the FOMC help anchor inflation expectations?\",\"answer\":\"It relies on credibility built through consistent communication and actions, conditioning the public to regard low inflation as credible and discouraging unwelcome disinflation.\"}]","A Perspective on Monetary Policy - Acting Systematically and Transparently | PDF",1789970454,13]