Most Central Bank watchers know that our Federal Reserve has a dual mandate of stable prices in the context of maximum unemployment. But its use of the words "stable and maximum" is somewhat misleading. For instance, one would assume that "stable" inflation would lead the Fed to pursue no change in prices and "maximum" unemployment would be a rate targeted at 0 percent; but this is not the case.
For some antithetical economic reason central bankers have unanimously redefined stable prices as adopting a 2 percent inflation target. The Fed has also morphed the term maximum unemployment rate to mean 5-6 percent, clinging to the misguided belief that full employment is the progenitor of inflation, despite no supporting economic or historical evidence.