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Describe of intermediate target variable of monetary policy.

describe the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy. Now, on the basis of these criteria, evaluate the following as potential intermediate target variables:

a) the 90-day Treasury bill yield

b) the real federal funds rate

c) the real 30-year U.S. government bond yield

d) the non-borrowed monetary base

e) the growth rate of M2

f) excess reserves

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921639

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