Why Price Stability Is a Dangerous Illusion

One of the long-touted goals of central banking is “price stability,” which, in the minds of central bankers, means low and continuous inflation. Even if this goal wasn’t cover for inflationist policy, it’d still be important to note that “price stability” is actually an unachievable goal when properly understood.

The following article was originally published by the Mises Institute. The opinions expressed do not necessarily reflect those of Peter Schiff or SchiffGold.

There is almost complete unanimity among economists that the most important role of the central bank is to attain price stability. Allegedly, the policy of price stability promotes economic growth and individual well-being.