LYCOS RETRIEVER 
Inflation: Monetary Policies
built 198 days ago
Eventually, the public recognized inflation as a large problem, which eased political pressures and allowed the Federal Reserve to reduce inflation in the early 1980s. Since that time, the Federal Reserve has maintained a vigilant attitude toward inflation, tightening monetary policy quickly enough to counteract price pressures, thereby preventing the return of inflation.
Source:
Third, inflation targeting makes central banks accountable. Since the framework is transparent, the public can easily see whether the central bank is achieving its inflation target. Accountability is important for public acceptance of a central bank’s independence in setting monetary policy instruments. Such independence is vital for policy to be credible.
Source:
A high rate of inflation would make it more difficult to join the EURO, because it would breach the Maastricht criteria. If inflation in the UK was higher than Europe a single Monetary policy would be ineffective for the UK
Source:
MORE ABOUT
Monetary Policies