Describe the monetary policy known as inflation targeting. What are the three major issues that surround this practice?
Inflation targeting requires that the Fed try to keep the inflation rate near some predetermined level. The first issue surrounding this practice is whether the inflation rate target should be a specific rate or a narrow range of rates. Second, whether the target is a specific inflation rate or a narrow range of rates, what should that exact rate or range be? The final issue deals with whether the inflation rate target should be publicly announced or not.
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Researchers have found that there is no measurable difference between the earnings of men and the earnings of women who never married and never had children
Indicate whether the statement is true or false
A period of time in which the quantity of all factors of production used by a firm can be varied is called the
A) market period. B) variable run. C) short run. D) long run.
A firm must stress market share to be successful
Indicate whether the statement is true or false
Assume that supply decreases slightly and demand decreases greatly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.