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March/April 1993, 
Vol. 75, No. 2
Posted 1993-03-01

Views on Monetary Policy

by W. Lee Hoskins

The author discusses why central banks have been established, their bias toward inflation, and the importance of independence and accountability to their effectiveness. He also argue that zero inflation should be the dominant objective of a central bank and that current efforts to coordinate monetary policies are likely to conflict with that objective.