In remarks delivered at the Hoover Institution, New York Fed President John C. Williams discussed three key principles derived from monetary policy theory and experience that help guide central banks in achieving price stability. He said: “Years of experience—and years of careful analysis—have taught us that, first and foremost, central banks must own the responsibility for maintaining low and stable inflation and have the independence of action to achieve that goal.” “Theory and experience have also shown the importance of transparency and clear communication, including setting an explicit, numerical longer-run ... (full story)