According to the Reserve Bank of New Zealand Act of 1989 (section 8): The primary function of
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According to the Reserve Bank of New Zealand Act of 1989 (section 8): “The primary function of the Bank is to formulate and implement monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices.”
a) Do you think that this statement constitutes a hierarchical or dual mandate for the conduct of monetary policy?
b) Is this mandate consistent with a positive inflation rate target?
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a The statement in the Reserve Bank of New Zealand Act of 1989 section 8 constitutes a dual mandate ...View the full answer
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