How to Control Inflation
Inflation could be tamed through a proper measurement in monetary policy. The central bank or other committees can take the lead to take action determining the size and rate of growth in the money supply. The country’s financial regulator is responsible for this.
In the U.S. managing long-term interest rates, price stability, and maximum employment are done by the Fed’s monetary policy. Achieving these goals could bring a stable financial environment. The Federal Reserve keeps a steady long-term rate of inflation so that it could be beneficial for the economy.
When the price is stable, which means inflation is at a constant level, businesses can plan for the future because it is clear what they can expect in the situation. The Fed is positive that it will lead to maximum employment that is not bulged from monetary fluctuation over time. In this case the Fed does not limit the number of employment because it lies on the employment assessment determination.
