Paul Volcker almost has it right on currency banking

He says price stability is the key.  Change that slightly to price variance stability. The currency banker always wants to flow enough liquidity to match the pricing efficiency of a metropolitan district. In other words, which economic unit has the most self correlation? The large city. That unit represents a price settling time, and the currency banker wants to target that term.  In the case of the US, the Fed should make sure savings balances minus lending balances, projected two rate periods ahead, is enough to cover the price variance in a large city like New York. The currency banker wants to clear money flows at the same rate the New York clears prices.