[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-322427-105":59,"doc-detail-322427-en":131},{"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":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","price-stability-and-world-economic-recovery-economic-commentary","Price Stability andWorld Economic Recovery - Economic Commentary","","The commentary argues that central banks cannot eliminate short-term business fluctuations or ensure abundant low-interest credit, but monetary policy can support long-run economic stability by guaranteeing price stability. It examines the 1991 recovery prospects, the Federal Reserve’s easing actions, and the risks of global monetary “fine-tuning.” It warns that coordinated easing could undermine inflation-fighting gains and central-bank credibility while credit demand pressures rise during recovery.",{"@graph":69,"@context":123},[70,84,106],{"@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-world-economic-recovery-economic-commentary/322427/",{"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-world-economic-recovery-economic-commentary/322427.png","ImageObject",300,407,{"name":92,"@type":93},"Aurora","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-28","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",13,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why does the commentary distinguish long-term price stability from short-term stabilization?","Question",{"text":113,"@type":114},"It states central banks cannot smooth short-term business conditions or guarantee plentiful credit at low interest rates, but monetary policy can promote long-term investment and stable growth by ensuring price stability.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What actions has the Federal Reserve taken to respond to weakening economic activity?",{"text":118,"@type":114},"The commentary notes gradual easing, including lowering the discount rate in steps from 7% to 5.5%, promoting a reduction in the federal funds rate, and resulting declines in U.S. money market rates.",{"name":120,"@type":111,"acceptedAnswer":121},"Why does the commentary caution against coordinated global monetary easing?",{"text":122,"@type":114},"It argues that global fine-tuning could jeopardize recent inflation gains, damage central-bank credibility, and fail to address the rising credit requirements that emerge as recovery proceeds.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},322427,1790013239,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":105,"preview_page_count":4},4810365810221,"https://ap-avatar.wpscdn.com/davatar_155a257f0dc6eb9ab79c44ca47cae57d","# Price Stability andWorld Economic Recovery\n\ncentral banks can truly play from therole that many wish these forces couldplay.My intent in this Economic Com-mentary is to highlight this importantdistinction.Central banks can neithersmooth short-term fluctuations in busi-ness conditions nor guarantee an abun-dance of credit at low interest rates.Monetary policy,however,can pro-mote long-term investment and stablegrowth at the economy's long-runpotential by guaranteeing price stability.  \n## ■ The Current\n\nEconomic Environment  \nOur efforts to pursue price stability willconfront two challenges,one cyclicaland the other structural.Current busi-ness conditions present the most imme-diate obstacle.Over the past year,theU.S.economy has experienced a reces-sion.As downturns go,this one hasbeen relatively mild.We now seempoised for a recovery,but the uptummay be modest by historical standardsat least during the year ahead.  \nIn response to the weakening economicactivity of the past year,monetary pol-icy has been gradually eased.The Fed-eral Reserve Board lowered the discountrate in three steps from 7 percent in late1990 to 5.5 percent at present,and theFederal Open Market Committee(FOMC)has promoted a reduction inthe federal funds rate.Responding bothto these policy initiatives and to thesluggish economy,money market ratesin the United States have declined sig-nificantly.Capital market rates,as is typ-  \nJuly 1,1991  \nby W.Lee Hoskins  \nDuring the past decade,we have enjoyed considerable success in reducinginflation.Despite an unusually longeconomic expansion,rates of inflationdid not accelerate much during the1980s.While this is heartening,Ido notmark our success solely by the numbers;indeed,inflation remains unacceptablyhigh.Instead,I find encouragement inchanging attitudes,in both the UnitedStates and Europe,about the proper roleof monetary policy.Policymakers andacademic economists increasingly acceptthe view that monetary policy can pro-mote stable economic growth only byfocusing on long-tem price stability.  \nWe now stand at an important juncture.We face a rare opportunity to make fur-ther gains against inflation in the 1990s,but the commitment to this goal,whilegrowing,remains fragile.With the econ-omy struggling to edge out of recessionand with credit demands looming largeon the economic horizon,some observ-ers are calling for a further easing ofmonetary policies.They wrongheadedlycling to once-fashionable illusions thatnations can fine-tune economic activityand that the costs of achieving pricestability are prohibitively high.To cloakthese ideas in modem garb,they nowstress the global nature of world marketsand call for a coordinated worldwideeasing of monetary policies.  \nIn the weeks ahead,leaders of themajor industrialized countries will onceagain consider the merits of the globalfine-tuners'creed.They must distin-guish the role that monetary policy and  \nThe challenges of weak economic activ-ity and heavy credit demands have ledsome observers to advocate a coordi-nated global easing of monetary pol-icies.This economic fine-tuning couldjeopardize our recent gains againstinflation and would damage central-bank credibility.Central banks con-tribute to long-term economicgrowthonly by guaranteeing the stable pur-chasing power of money.  \nical,have been much less responsive toour monetary policy initiatives.  \nEconomic activity among the othermajor industrialized countries also hasweakened,but with somewhat greatervariation than we have come to expect.The United Kingdom and Canada haveexperienced relatively sharp economicdeclines since the middle of last year.Other countries,notably France andItaly,may have only recently begun toexperience declining economic activity.As in the United States,most of thesecountries have eased monetary policiesthrough reductions in official central-bank lending rates.  \nAlthough many expect economicgrowth in Germany and Japan to slow,it recently has remained strong,withproductive capacity at high ","cbCaimAt5LePAE53","https://ap.wps.com/l/cbCaimAt5LePAE53","pdf",1347102,"English","# Price Stability and World Economic Recovery\n## The Current Economic Environment\n## Inflation, Credit Demands, and Policy Choices","[{\"question\":\"Why does the commentary distinguish long-term price stability from short-term stabilization?\",\"answer\":\"It states central banks cannot smooth short-term business conditions or guarantee plentiful credit at low interest rates, but monetary policy can promote long-term investment and stable growth by ensuring price stability.\"},{\"question\":\"What actions has the Federal Reserve taken to respond to weakening economic activity?\",\"answer\":\"The commentary notes gradual easing, including lowering the discount rate in steps from 7% to 5.5%, promoting a reduction in the federal funds rate, and resulting declines in U.S. money market rates.\"},{\"question\":\"Why does the commentary caution against coordinated global monetary easing?\",\"answer\":\"It argues that global fine-tuning could jeopardize recent inflation gains, damage central-bank credibility, and fail to address the rising credit requirements that emerge as recovery proceeds.\"}]","Price Stability andWorld Economic Recovery - Economic Commentary | PDF",1789962691]