[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 55 Introduced in House (IH)]

103d CONGRESS
  1st Session
H. J. RES. 55

  Directing the Federal Open Market Committee of the Federal Reserve 
   System to adopt and pursue monetary policies leading to, and then 
                      maintaining, zero inflation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 5, 1993

 Mr. Neal of North Carolina introduced the following joint resolution; 
   which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                            JOINT RESOLUTION


 
  Directing the Federal Open Market Committee of the Federal Reserve 
   System to adopt and pursue monetary policies leading to, and then 
                      maintaining, zero inflation.

Whereas zero inflation will reduce interest rates to, and maintain them at, 
        their lowest possible levels;
Whereas zero inflation will promote the highest possible sustainable level of 
        employment;
Whereas zero inflation will generate the maximum sustainable rate of economic 
        growth;
Whereas zero inflation will encourage the highest possible rate of savings and 
        investment, thereby boosting productivity and enhancing our standard of 
        living;
Whereas zero inflation will stimulate efficiency in production, thereby 
        maximizing our competitiveness in world trade;
Whereas zero inflation will help stabilize the economy and minimize risk and 
        uncertainty in economic decisionmaking, thereby facilitating long-term 
        planning and investment;
Whereas zero inflation renders the economy more productive and efficient by 
        abolishing the need to devote resources, time, and energy to predicting 
        inflation and coping with the consequences of inflation;
Whereas zero inflation minimizes the risk and reduces the severity of recession; 
        and
Whereas inflation is essentially a monetary phenomenon which, over reasonable 
        periods of time, can be adequately controlled by the monetary policies 
        of the Federal Open Market Committee of the Federal Reserve System: Now, 
        therefore, be it
    Resolved by the Senate and House of Representatives of the United 
States of America in Congress assembled, That--
            (1) the Federal Open Market Committee of the Federal 
        Reserve System shall adopt and pursue monetary policies to 
        reduce inflation gradually in order to eliminate inflation by 
        not later than 5 years from the date of the enactment of this 
        legislation and shall then adopt and pursue monetary policies 
        to maintain price stability;
            (2) inflation will be deemed to be eliminated when the 
        expected rate of change of the general level of prices ceases 
        to be a factor in individual and business decisionmaking; and
            (3) the Board of Governors of the Federal Reserve System 
        shall explain, in its semiannual monetary policy report to the 
        Congress, the relationship of its plans for monetary policy, 
        including the ranges for growth or diminution in the money and 
        credit aggregates, to the achievement and maintenance of price 
        stability over time.

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