In dealing with an inflationary gap 18 to 24 months in the future, monetary policy is like "taking away the punch bowl just when the party is getting started."

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Monetary policy takes time to have an effect on the economy, so implementing it to deal with an inflationary gap 18 to 24 months in the future can be compared to taking away the punch bowl before people have had enough to drink at the party. Just as people may feel upset if the punch bowl is taken away too early, the economy may suffer if monetary policy is implemented too soon.

In Dealing with an Inflationary Gap 18 to 24 Months