chapter  3
Monetary credibility and national output: An experimental verification of the Lucas ‘islands’ explanation of business cycles
An experimental verification of the Lucas ‘islands’ explanation of business cycles*
Pages 12

The aim of monetary policy should surely be not to prevent all fluctuations in the general price level, but to permit those which are necessary to the establishment of appropriate alterations in output and to repress those which tend to carry the alterations in output beyond the appropriate point.