dual mandate

The dual mandate refers to the responsibility of certain organizations, particularly central banks, to achieve two key objectives: stable prices and maximum employment. For example, in the United States, the Federal Reserve aims to manage inflation while promoting job growth. This approach seeks to balance economic stability and prosperity, ensuring that inflation doesn’t erode purchasing power while also striving to reduce unemployment. Achieving both goals simultaneously can be challenging, as measures to control inflation might sometimes lead to slower job growth, and vice versa.