A columnist for bloomberg.com observes: The Fed is easily able to tell when unemployment or inflation is
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A columnist for bloomberg.com observes: “The Fed is easily able to tell when unemployment or inflation is high, but inflated asset prices are much, much harder to identify.”
a. Briefly explain whether you agree with this columnist’s statement.
b. What are the implications of your answer to part (a) for Fed policy?
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Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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