He found that the utilization rate associated with stable inflation seemed to hold at roughly 82 percent.

Your goal: Keep inflation low and stable at just under 2%.

Moderate and stable inflation would avoid such a seesawing of price movements.

"It recognizes that stable inflation is the key ingredient to economic expansion."

All you have to do is set interest rates so as to keep inflation low and stable at just under 2pc.

Unemployment, despite thousands of recent layoffs across a wide range of sectors, is still well below the rate commonly associated with stable inflation and growth.

He also continued to leave his options open but characterized low and stable inflation as a prerequisite for sustainable economic growth.

The criteria includes "a low and stable inflation, exchange rate stability and sound public finances."

But, because gold holdings pay no interest, they are costly to maintain during periods of low or stable inflation.

Bullard has suggested that the best way to achieve both parts of the mandate is by pursuing low and stable inflation.