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Why would a more credible commitment by the fed

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Reference no: EM13694014

  • Why would a more credible commitment by the Fed to a stable price level tend to reduce long-term interest rates?
  • Why won't a steady growth of the money supply generate a constant inflation rate over time?

• Why do problems of lags and uncertainty make it impossible for the Fed to precisely target the price level?

 

Reference no: EM13694014

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