What will be the effect of such a random change on output

Reference no: EM13897626

If the central bank cannot change output and unemployment through systematic money supply changes and its induced changes in the anticipated in?ation rate, should it try to do so by changes in the unanticipated in?ation rate? If such unanticipated in?ation requires a random change in the money supply, how can the central bank achieve this? What will be the effect of such a random change on output and unemployment, and what conclusions can be drawn on the advisability of such a monetary policy? Discuss.

Reference no: EM13897626

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