Why do central banks often exercise monetary policy by targeting an interest rate rather than by setting

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Why do central banks often exercise monetary policy by targeting an interest rate rather than by setting particular levels of the money supply?

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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Question Posted: Feb 25, 2016 06:32 AM

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Why do central banks often exercise monetary policy by targeting an interest rate rather than by setting

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Because the demand for money shifts around too much a f...View the full answer

Macroeconomics

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