Description
Discuss how does a rule-based monetary policy differ from discretionary monetary policy (that is, monetary policy not based on a rule)? What are some of the arguments for each?
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Running head: MONETARY POLICY
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Monetary policy
Institution affiliation
Name of professor
Name of student
Date
MONETARY POLICY
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Rule-based monetary
This form of policy formulation encompasses the use of the general procedural rule of monetary
policy. This policy was greatly advocated by economists such as Friedman who came up with the
quantity equation which primarily related the m...
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