Many economists believe that there is a long and variable time lag between the time a change
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Many economists believe that there is a “long and variable time lag” between the time a change in monetary policy is instituted and the time its primary impact on output, employment, and prices is felt. If true, how does this long and variable time lag affect the ability of policy-makers to use monetary policy as a stabilization tool?
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The concept of a long and variable time lag in monetary policy refers to the idea that there is often a delay between when a central bank like the Federal Reserve in the United States makes changes to ...View the full answer
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Related Book For
Macroeconomics Private And Public Choice
ISBN: 9780357134009
17th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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