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March/April 1994, 
Vol. 76, No. 2
Posted 1994-03-01

Can the Central Bank Achieve Price Stability?

by Jerome L. Stein

In the long run, the GDP deflator is closely related to the quantity of M2 per unit of real GDP. The question examined in this article concerns how the Federal Reserve should select ranges for monetary growth over the coming year to achieve a given rate of change in the price level in the near future.