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But by the mid-1980's policymakers throughout the world were assenting to the following propositions:Central banks must make their commitments to long-run price stability credible;Central banks must accept that the average level of unemployment is determined not by cyclical factors, but by "structural" factors, which they have no business trying to address;Announcing and trying to maintain a money-supply growth target is an easy way for a central bank to communicate its principal intentions, gain credibility, and give outsiders a way to check whether sound policies are really being followed.
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