This multiplies the opportunities for agents to exercise their entrepreneurial spirits, to pursue and spread technological advances and to contribute to the well-being of society at large. Technological factors and agents’ attitudes towards consumption, savings and work combine with government thrift and legislation to determine the real basis for economic well-being.
Any attempts by a central bank to change this balance of real forces in the short run at the expense of the stability of the currency can only be futile and self-defeating. Today, there is a broad consensus among economists that monetary policy is not a suitable tool for fine-tuning economic developments.