In so doing, this policy will enable producers and consumers, employers and employees to proceed with full confidence that one aspect of an otherwise unknowable future is predictable: namely, the rate of price inflation, or its mathematical inverse, the purchasing power of money.
4 In these conditions, entrepreneurs can plan and act; savers can save without fear that their savings will be wiped out by inflation and borrowers can borrow in orderly markets at interest rates that are not unduly raised by inflation risk premia.