In such circumstances, the task of monetary policy is to help guide the economy back toward the balanced-growth path, and the appropriate speed of that convergence will depend on the nature of the shocks that have affected the economy.
The enhanced communication strategy and Federal Reserve accountability I have argued that the Federal Reserve's enhanced communication strategy will improve the public's understanding of our objectives and policy strategies and thereby enable households and businesses to make better decisions. In addition, enhanced communication can help anchor the public's inflation expectations, which promotes both price stability and higher economic growth.