Fiscal policy can make the central banks job impossible because: a. Politicians tend to take a short-term
Question:
Fiscal policy can make the central bank’s job impossible because:
a. Politicians tend to take a short-term view, encouraging doubt about the commitment to price stability or financial stability.
b. In some cases, politicians are predisposed toward financing techniques that will create inflation.
c. Inflation provides immediate revenue and reduces the value of the government’s outstanding debt.
d. Responsible fiscal policy is a precondition for successful monetary policy.
e. Central banks remain independent at the pleasure of politicians.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Money Banking And Financial Markets
ISBN: 9781260226782
6th Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted: