Therefore, given that the central bank’s ultimate goal should be to maximize the public welfare, I believe that the design of monetary policy ought to reflect the public’s preferences, especially with respect to avoiding particularly adverse economic outcomes.
3  The now-classic textbook on this topic is Woodford (2003); refer also to Goodfriend and King (1997); Rotemberg and Woodford (1997); Clarida, Gali, and Gertler (1999); King and Wolman (1999); Erceg, Henderson, and Levin (2000); Benigno and Woodford (2003); Giannoni and Woodford (2005); Levin and others (2005); and Schmitt-Grohé and Uribe (2005).