The text Web site has data from the Ball-Sheridan study on inflation targeting. One variable is the
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a. In theory, how might inflation targeting affect output stability?
b. What do the Ball-Sheridan data say about this issue? Compare the standard deviation of output growth before and after the early 1990s in countries that adopted inflation targets and countries that didn’t.
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a The Phillips curve relationshishows a theoretical connection between inflation and output stabilit...View the full answer
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