[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321945-105":59,"doc-detail-321945-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","price-stability-and-regional-diversity","Price Stability and Regional Diversity","","This economic commentary argues that the Federal Reserve should pursue price stability as its sole monetary policy objective. It explains that the national business cycle is an average of diverse regional cycles, making it difficult to target multiple outcomes with one instrument. The text contends that attempts to stimulate output during recessions risk higher inflation, fail to achieve both stability and full employment, and create uncertainty due to forecasting limits and policy lags. It also describes how regional diversity strengthens the case for stable prices.",{"@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/price-stability-and-regional-diversity/321945/",{"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/price-stability-and-regional-diversity/321945.png","ImageObject",300,407,{"name":92,"@type":93},"Riley","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},"Why does the commentary claim the Federal Reserve can only achieve price stability?","Question",{"text":112,"@type":113},"Because the national economy and business cycle reflect averaged, diverse regional cycles, the Fed cannot reliably fine-tune outcomes for different regions. The text argues that price stability best aligns with how monetary policy affects the economy.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What problems does the commentary cite with adjusting policy across business-cycle stages?",{"text":117,"@type":113},"It says the Fed lacks forecasting precision to implement stop-and-go changes, and monetary policy works with a 6–12 month lag. It also warns that easy money mainly increases inflation.",{"name":119,"@type":110,"acceptedAnswer":120},"How does the commentary connect price instability to broader economic effects?",{"text":121,"@type":113},"An unstable price level creates uncertainty for households and businesses, reducing productivity and economic well-being. Anchoring the price level is presented as supporting currency value and long-term efficiency.","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},321945,1790111748,{"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},1374391975076,"https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051","by W.Lee Hoskins  \nhose who recognize and appreciatethe regional diversity of our nationaleconomy can readily understand why Ibelieve that price stability is the only pol-icy objective that the Federal ReserveSystem can achieve.My reason forespousing this view is quite simple andis vested in the nature of national busi-ness cycles.  \nThe national economy is an amalgamof diverse regional economies.The na-tional business cycle,likewise,is anaverage of regional business cycles,which differ according to the timing ofpeaks and troughs and the magnitudesof expansions and contractions.Conse-quently,just as it is impossible for theFederal Reserve to pursue multiple na-tional objectives,it becomes clear thataiming a single monetary instrument ata national target,which is made up ofseparate and perhaps independentregional cycles,would be a futile exer-cise that could yield only unpredictableand mostly undesirable results  \nWeak national economic conditionshave once again raised the issue ofwhether the Federal Reserve shouldtake steps to stimulate the economy andof how large those steps should be.TheSystem repeatedly reduced the discountrate and the federal funds rate late lastyear and early in 1991 in response tothe economic slowdown.I have some-times disagreed with the underlying mo-tive,but I have not been troubled bythese policy actions,becauseI do notthink that they are inconsistent withprogress toward lower inflation.  \n# Price Stability and Regional Diversity\n\nNevertheless,I am troubled by the infer-ence made by many analysts and policy-makers that the Federal Reserve,by sim-ply turning on the money spigots,canrestore the economy to an acceptable andsustainable long-run growth path.  \nTherefore,in this Economic Commen-tary I wish to express why I believethat price stability is the only objectivethe Federal Reserve can achieve,andwhy I believe that a monetary policythat pursues price stability is optimal ina country whose regional diversity is asbroad as ours.  \nI have often publicly discussed my rea-sons for not tying monetary policy ob-jectives to the business cycle.My posi-tion stems from what policymakers canreasonably be expected to know aboutthe economy and how policy affects theeconomy.I furthermore contend thatregional economic diversity strength-ens these arguments.  \n## ■ Should the Federal ReserveRespond to Business Cycles?\n\nIt is generally accepted that monetarypolicy affects the general price level inthe long run,and aggregate output andemployment in the short run.Therefore,why not simply pursue different mone-tary policies at different stages of thebusiness cycle?Why not pursue a pol-icy of stimulating output during a reces-sion and promoting price stability whenthe economy has recovered and beginsexpanding again?Actually,that waspretty much what the Federal Reservedid in the 1970s,and the results werenot goodWe achieved neither price sta-bility nor full employment.  \nMay 1,1991  \nIn a recession,it may seem advanta-geous for the Federal Reserve Systemto stimulate output by expanding themoney supply.This response cannotremedy the structural shocks thataffect regional economies,however.Ina recent speech,Federal ReserveBank of Cleveland President W.LeeHoskins presented this analysis ofhow regional economic structure sup-ports the goal of price stability as theFed's sole monetary policy focus.  \nFirst,we simply don't have the forecast-ing accuracy to fine-tune the economywith the precision necessary to imple-ment a stop-and-go policy of expandingthe money supply more rapidly whenthe risk of recession is higher,and re-stricting the monetary expansion whenthe threat subsides but is replaced by agreater likelihood of inflation.Even inthe dullest of times,the world aboundswith enough random events of signifi-cant economic consequence to makeaccurate forecasts virtually impossible.And dramatic events like the PersianGulf conflict can only play completehavoc with our best,but still imperfect,forecasts.Who would have thought las","cbCaioOL2gX9wE8z","https://ap.wps.com/l/cbCaioOL2gX9wE8z","pdf",1334725,"English","# Price Stability and Regional Diversity\n## ■ Should the Federal Reserve Respond to Business Cycles?\n## ■ Regional Business Cycles","[{\"question\":\"Why does the commentary claim the Federal Reserve can only achieve price stability?\",\"answer\":\"Because the national economy and business cycle reflect averaged, diverse regional cycles, the Fed cannot reliably fine-tune outcomes for different regions. The text argues that price stability best aligns with how monetary policy affects the economy.\"},{\"question\":\"What problems does the commentary cite with adjusting policy across business-cycle stages?\",\"answer\":\"It says the Fed lacks forecasting precision to implement stop-and-go changes, and monetary policy works with a 6–12 month lag. It also warns that easy money mainly increases inflation.\"},{\"question\":\"How does the commentary connect price instability to broader economic effects?\",\"answer\":\"An unstable price level creates uncertainty for households and businesses, reducing productivity and economic well-being. Anchoring the price level is presented as supporting currency value and long-term efficiency.\"}]","Price Stability and Regional Diversity | PDF",1789960653,13]