Suppose the central bank in your country has price stability as its primary goal. Faced with a choice of having monetary policy decisions made by a well-qualified individual with an extremely strong dislike of inflation or a committee of equally well-qualified people with a wide-range of views, which choice would you recommend?
Answer to relevant QuestionsThe long list of central bank goals includes the stability of interest rates and exchange rates. You look on the central bank Web site and note that they have increased interest rates at every one of their meetings over the ...To what extent has the Federal Reserve “monetized” government debt? Plot since 1970 the change from a year ago (measured in billions of dollars) in gross federal debt (FRED code: FYGFD) and the change from a year ago ...Do you think the FOMC has an easier or a harder time agreeing on monetary policy than the Governing Council of the ECB? Why? How might the ECB’s pursuit of price stability as its primary objective restrict its response to the sovereign debt crisis in the euro zone? Follow the impact of a $100 cash withdrawal through the entire banking system, assuming that the reserve requirement is 10 percent and that banks have no desire to hold excess reserves.
Post your question