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Monetary policy-taylor rule and inflation targeting

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Reference no: EM131091566

"Monetary Policy" Please respond to the following:

  • 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.

"Taylor Rule and Inflation Targeting" Please respond to the following:

  • Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.
  • 4 Why have rules for monetary policy based on money growth been unsuccessful in recent years?
  • 10Why don't policymakers want to adopt rules for monetary policy?

Reference no: EM131091566

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