Most economists agree that the long-term goal of monetary policy is to keep interest rates as low as possible.

Question

Quizplus · Accepted Answer

Most economists actually believe that the long-term goal of monetary policy is to maintain price stability, which involves controlling inflation, and that interest rates should be adjusted as needed to achieve this goal. Keeping interest rates as low as possible is not always the desired outcome, as it can lead to other economic imbalances such as asset bubbles or excessive borrowing.

Most Economists Agree That the Long-Term Goal of Monetary Policy