The architects of monetary and fiscal policy seek to use the tools at their disposal to meet
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Question:
The architects of monetary and fiscal policy seek to use the tools at their disposal to meet macroeconomic policy objectives.
- What are some challenges – specifically around the timeliness and accuracy of data – that they face in trying to decide what policies to implement?
- In addition to these, what additional timing challenges are unique to fiscal policy (but that monetary policy makers can avoid)? How do monetary policy makers avoid them?
- Given these challenges, reflect on what you think policy makers should do going forward.
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