A monetary policy strategy that prioritizes long-run price stability while allowing short-term inflation deviations to support employment goals. Central banks, like the Federal Reserve, use it to anchor expectations without rigidly targeting a fixed inflation rate. This framework benefits households, businesses, and investors by fostering economic stability, reducing uncertainty, and enabling adaptive responses to shocks.
Get alerts when this topic surges in newsletters. Free to start.
Sign up freeExplore more trends:Trending Topics ·AI Trends ·Business Trends ·Finance Trends ·Technology Trends