You read a story in the newspaper blaming the central bank for pushing the economy into recession.

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You read a story in the newspaper blaming the central bank for pushing the economy into recession. The article goes on to mention that not only has output fallen below its potential level but that inflation had also risen. If you were to write to the newspaper defending the central bank, what argument would you make?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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