1) Discuss an economic concept

1) Economic concept brought about byAnna Schwartz is one that signifies the importance of pricestability which should be the focus of the monetary system. It ledto anti inflation policies which came into effect in later part ofthe 20th century after her book was published. She constantlyemphasized that price stability brings about financial stability inthe economy. That is if aggregate price level is stable, resourcesare employed much more efficiently as there is no sudden inflationor deflation in the economy, and even if there is inflation for ashort duration, the central bank is able to control it via monetarypolicy by making changes in the level of interest rates.

An aspect of life of Anna Schwartzwhich I find interesting is her commitment and passion foreconomics, she pursued her passion even when she was not awardedher PhD, even then she continued to work and looked for solutionsbecause of her love for economics.

2) She worked on her book “MonetaryHistory of the United States” after a 15 year collaboration whichshowed delayed gratification and the need to constantly work, nomatter how long it takes to finish a project, if one truly wants todo it, it will be completed.

I will apply this concept of delayedgratification in my life, wherein I will continue to work hard, nomatter how long it takes, how many obstacles I face, as I know itis my passion and if one wants to accomplish something, one willsurely do so one day or another.

Source: Women in Economics, AnnaSchwartz. 4:19 and 6:16 time

Price Stability and Financial Stability: Competing orCompatible? : Federal reserve bank of Louis.