Level of excess reserves fluctuates widely and unpredictably

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Consider a country where the level of excess reserves fluctuates widely and unpredictably. Would such a country be a good candidate for a money growth rule to guide monetary policy? Explain your answer.

Reference no: EM131223198

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Level of excess reserves fluctuates widely and unpredictably : Consider a country where the level of excess reserves fluctuates widely and unpredictably. Would such a country be a good candidate for a money growth rule to guide monetary policy?

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