For example, if financial market participants thought that the Federal Reserve were not dedicated to maintaining long-run price stability, they would be less willing to hold dollar-denominated assets and the resulting decline in the exchange value of the dollar would tend to add to inflationary pressures.
Rather, by the late eighties it had become increasingly recognised here and abroad that the best contribution BIS Review 36/1998  -2-  which monetary policy could make to those other objectives - social justice, growth in employment, growth in output - was to deliver predictably stable prices.