A response by the Federal Reserve Bank of Cleveland president to critics of his continuing advocacy of zero inflation as the overriding objective of monetary policy.

A discussion of the serious banking problems created by the conflict between market forces and regulation, featuring comments on regulation, deposit insurance, and objectives for financial reform.

A perspective on regulatory reform of the financial industry, focusing on the need to revamp the deposit-insurance system and recommending greater reliance on market forces, less reliance on the regulatory apparatus, and the retention of the current framework of multiple regulatory agencies.

An analysis of the institutional design of the Federal Reserve System, stating that the central bank should be given a clear legislative mandate to achieve price-level stability and financial market efficiency, along with the independence and accountability necessary to realize these goals.

Originally appeared in the Federal Reserve Bank of Philadelphia Business Review, February 1970, p. 23-30