(Answered) 1 why not specify a goal for the monetary authorities that

Economics

1. Why not specify a goal for the monetary authorities that included both a price level and an unemployment target?

2. Should measures of in?ation include asset prices (e.g., stock prices and house prices), so that in?ation targeting would require the monetary authorities to act when asset prices rise dramatically?

3. At Christmas and Easter the public withdraws large amounts of cash from their ac- counts. What should central banks do during these periods to stabilize interest rates?

4. In a world in which electronic transfer of funds is becoming easier and the value of more and more people's assets is easier to ascertain, is the power of central banks doomed to decline? Is this worrisome?

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