Monetary policy shall focus on the stabilization of inflation because inflation is what matters for ordinary people. They wish to be sure that their savings will not lose their value in the future.

Interest rates are not the appropriate goal of monetary policy. Although monetary policy can affect them, it does so via changes in the money supply. Therefore, the central bank shall aim for stable and low growth of the money supply.

Low interest rates allow cheap borrowings to all sectors in the economy. However, they permit higher growth of fiscal expenditures financed by the debt creation. Large debts, however, inevitably lead to increased interest rates and defaults in the future.

Low interest rates permit investments with lower productivity. Therefore, low interest rates are harmful to long-run growth, which is driven by productive investments.