Social equality is better served by economic stability. A large body of theoretical and applied academic literature and the experience of the past decades indicate that monetary policy’s best contribution to economic stability is to maintain price stability. Moreover, credible central banks have a comparative advantage in  11  See Albanesi, Stefania (2007), “Inflation and inequality”, Journal of Monetary Economics, Elsevier, Vol.
However, no significant improvement was seen in production, as the increase in final demand was partly offset by inventory adjustment and by an increase in imports. As a result, a virtuous circle of demand, production, and income was not confirmed. This situation, however, appears to have changed somewhat in the latter half of 1996.