Advantages and disadvantages of imposing an explicit taylor

Assignment Help Econometrics

Reference no: EM131135085

Suppose you have been elected to Congress. One day, one of your colleagues makes the following statement:

The Fed chair is the most powerful economic policy maker in the United States. We should not turn over the keys to the economy to someone who was not elected and therefore has no accountability. Congress should impose an explicit Taylor rule on the Fed. Congress should choose not only the target inflation rate but the relative weight on the inflation and unemployment targets. Why should the preferences of an individual substitute for the will of the people, as expressed through the democratic and legislative processes?

Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.

Reference no: EM131135085

Questions Cloud

Three poems and discuss the theme of home in each one : Week 4 Discussion Post: Choose three poems and discuss the theme of home in each one. What is home within each poem? People? Places? Things? Feelings? Your post should be about 150-200 words, basically correct in grammar and punctuation, and your ..

Did you have predatory-prey relationship with chicken today : Did you have a predatory-prey relationship with a chicken today? That is, did you eat chicken for lunch? Did you have a competitive relationship with a coworker today? That is, were you competing for a raise?

The stranger in hawthorne story : After reading the stories answer the questions below in a discussion post and respond to two of your classmates' posts. Write complete grammatically correct sentences but do not rewrite the questions. Number your responses to correspond to the que..

What level of energy use would the model : Evaluate each of the four regression parameters in (a) to determine whether any are likely to be zero. Eliminate those parameters with a high probability of being zero from the model and estimate a new model. Compare the advantages and disadvantag..

Advantages and disadvantages of imposing an explicit taylor : Do you agree with your colleague? Discuss the advantages and disadvantages of imposing an explicit Taylor rule on the Fed.

Large research paper step-by-step throughout the entire : When students hear that they have to write a large research paper, that news is often followed by anxiety and trepidation. In this course, however, we will be working toward that large research paper step-by-step throughout the entire eight weeks..

Confidence interval for the population mean number of hours : ECO395 - Assignment. Construct a 90% confidence interval for the population mean number of hours studied per week

Write report on strategic management environmental scanning : Write a report on strategic management; environmental scanning. Term paper on environmental scanning as used by the procurement function in strategic management. The term paper gives an introduction on environmental scanning, the procedure, objective..

What is the stance of monetary policy : Does the language raise any issues related to macro prudential regulation of financial institutions?

User Account

All Pages