Objectives of Monetary Policy The objectives of monetary policy are to "promote maximum employment, inflation (price stabilization) and economic growth". If economists believe that it is possible to achieve all the goals at once, the goals are inconsistent. There are limitations to monetary policy. The term “maximum employment” means that we should try to keep the unemployment rate as low as possible without pushing it below what economists call the natural rate or full employment rate. Pushing unemployment below that level would increase inflation and therefore ruin the other goal: price stability, economic growth, which is our long-term goal. Overall financial stability will lead to a better balance between consumption and saving which will make resources available for investment purposes. , reduce changes in the economy created by past inflation and savers' reactions, as well as promote high and sustainable economic growth; and contribute to an investor-friendly environment that will attract foreign investors to the country. Evidence has suggested that economies perform better, in terms of growth, employment and living standards, in low-inflation environments than when inflation is persistently high. This evidence is a comparison between countries over long periods. The association between economic performance, as measured by output growth or productivity growth, and inflation. This indicates a negative relationship; that is, the higher the inflation, the lower the real growth rate. Data suggesting that low inflation promotes growth has motivated recent decisions by numerous central banks and governments, in particular