incompleteness of financial markets, the long-run optimal inflation target and its relationship with public

; monetary policy, the choice of inflation targets, and the responsibilities of central banks; fiscal policy

reality -- Inflation and unemployment -- Epilogue: picture and axiomatic structures.

inflation; macroprudential tools (which focus on the stability of the entire financial system rather than of

central banks and the governments. The policy targets are low inflation, low unemployment, and low