Research however stresses the importance of a number of price rigidities affecting the economy, which weaken the ability of monetary policy to control short-term inflationary developments and possibly cause interest rate movements to exert even major temporary effects on overall demand and economic growth.
The conclusion from this has been that it is worthwhile for monetary policy to aim at price stability over the medium term, but not to strive for a short-term steering of the price level, which would require the conduct of a very aggressive, stop-and-go interest rate policy, leading to unnecessary shocks to employment and economic growth.