It is easier to control the monetary base than broader money, but it is less relevant to do so.’ Do you agree with this statement?
Answer to relevant QuestionsIs there a compromise between purely discretionary policy and adhering to strict targets?How can adaptive expectations of inflation result in clockwise Phillips loops? Why would these loops not be completely regular?What determines the rate of depreciation? What would happen if the rate of depreciation fell?What type of tax cuts is likely to create the greatest (a) incentives, (b) disincentives to effort?What factors will determine whether a country’s joining a customs union will lead to trade creation or trade diversion?
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