Need help with Economics Discussion Chapter 18 &19

Economics
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  • 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.
  • Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.
Dec 14th, 2015

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pros

the monetary policy is used to curb the level of inflation in a country and this makes the price of the commodity to be at a reasonable price .

cons

inconsistency of the policies do affect the policy making

the challenges from the macroeconomic forces ie political factors , economic factors , social cultural factors .




the impact  on the economy if the central bank in the us is used inflation targeting

the inflation targeting can be done by the use of monetary policy which ill  have a positive effect on the price stability , long term interest rates and the goals of employment maximization.

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Dec 14th, 2015

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Dec 14th, 2015
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