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Discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policymakers at each policy meeting.

• Review the money-growth rules discussed in Chapter 18 to determine which rule you believe is the most viable. describe your rationale.

• Argue for or against using the Taylor Rule to guide economic policy. Provide specific exs to support your response.

•Determine the impact on the economy if the central bank in the U.S. used inflation targeting. describe your rationale.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946236

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