There are no good monetary policy options. Since policymakers must choose between alternative policies with undesirable consequences, there is no reason to assume that a single option will be selected and adhered to. Rather, policies will continue to alternate between "spurts" of monetary growth...

Adopting a restrictive policy to reduce inflation and being willing to stick with it even in a long and deep recession is not evidence that it will be successful. The test of whether a long-run anti-inflation policy will be maintained does not occur until the subsequent expansion gets underway....