You are asked to advise a central bank of an advanced economy that is about to set
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You are asked to advise a central bank of an advanced economy that is about to set an inflation target for the first time. Officials are leaning toward adopting a 2 percent target, in line with the practice in many other countries. Suggest two factors that the central bank should consider before settling on 2 percent.
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You might suggest the central bank officials consider 1 Estimates of the neutral real in...View the full answer
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Related Book For 
Money Banking and Financial Markets
ISBN: 978-1259746741
5th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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