1 discuss the pros and cons of central banks setting policy

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1. 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.

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

3. Argue for or against using the Taylor Rule to guide economic policy. Present precise examples to support your response.

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

Reference no: EM13353052

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