Question: The main argument against active monetary policy is that the policy affects the economy with a substantial lag. In fact, changes in monetary policy are

The main argument against active monetary policy is that the policy affects the economy with a substantial lag. In fact, changes in monetary policy are thought to take at least six months to have an impact on economic activity. Therefore, do you think the presence of this substantial lag period supports the apparent approach ( taken by the central bank (RBA)? Explain.

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