The Federal Reserve took swift action to help restore the United States financial system after the global
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The Federal Reserve took swift action to help restore the United States financial system after the global financial crisis started in fall 2007. The various instruments used by the Federal Reserve were highly criticized for fueling expectations of higher inflation rates. What is the effect of monetary policy on expectations about inflation?
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Monetary policy including actions taken by central banks like the Federal Reserve can influence expectations about future inflation in several ways Fo...View the full answer
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