·  Exactly how stable do we want prices to be--rising at a measured rate of zero or at some other rate? Maintaining Price Stability Price stability is widely understood to be a feasible objective and to be sustainable with little long-run cost in terms of output and unemployment.
Indeed, many believe that greater price stability should also stabilize output, and that the improved allocation of resources coming from price stability should promote productivity and raise living standards in the long run. As a part of this consensus, central banks around the developed world are now firmly determined to achieve and maintain price stability.