Indeed, in recent years, academic research on monetary policy has caught up with the policymakers, providing new support for what I have termed the modern consensus, that price stability supports both strong growth and stability in output and employment. Conclusion Price stability plays a dual role in monetary policy. Stable prices are desirable in themselves and thus are an important goal of monetary policy.
But stable prices are also a prerequisite to the achievement of the Federal Reserve's other mandated objectives, high employment and moderate long-term interest rates. In particular, low and stable inflation and inflation expectations enhance both economic growth and economic stability. The complementarity of price stability with the other goals of monetary policy is now the consensus view among economists and central bankers.