Intermediate target variable of monetary policy

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Reference no: EM1314371

Explain 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

Reference no: EM1314371

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