The primary objective of monetary policy is price stability, which constitutes a pivotal framework condition for economic activity. Price stability ensures that consumers and businesses can make their economic decisions under stable and predictable conditions and thus has a positive impact on economic activity and employment. To obtain price stability and to assess whether or not it has been achieved, a clear definition of the price stability objective is needed. Monetary policy also has short-term effects on the economy, as key interest rates can be raised in times of economic booms when the economy threatens to overheat and thus endangers price stability. During economic downturns, in contrast, cuts in the key interest rates can help stimulate investment and consumption. (See Monetary Policy and the Economy)