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

Directs the Federal Open Market Committee of the Federal Reserve System to pursue monetary policies to gradually reduce inflation, eliminating it within five years, and maintain price stability.

States that inflation will be deemed to be eliminated when the expected rate of price changes ceases to be a factor in individual and business decisionmaking.

Directs the Board of Governors of the Federal Reserve System to explain in its semiannual report to the Congress the relationship of its monetary policy plans to the maintenance of price stability.