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Central banks like the Reserve Bank of New Zealand and the U.S. Fed set monetary policy with a dual mandate: to maintain price stability and
Central banks like the Reserve Bank of New Zealand and the U.S. Fed set monetary policy with a dual mandate: to maintain price stability and support maximum sustainable employment. However, maximum employment does not mean that every able man or woman must have a job, and stable prices do not mean average measured inflation is exactly zero, so the policy mandate sounds more like a Shakespearean much ado about nothing. (300 words)
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