Assuming money demand is stable, explain why an economy that uses inflation target for monetary policy is effective in the promotion of economic growth during recession. Which variable helps inflation target to be more effective? Also, would expectations play a role in defining their effectiveness? Draw the AD-AS and IS-LM graph to support your answer. Provide your opinion regarding usage of Monetary Policy on Thai current economic situation
Assuming money demand is stable, explain why an economy that uses inflation target for monetary policy is effective in the promotion of economic growth during recession. Which variable helps inflation target to be more effective? Also, would expectations play a role in defining their effectiveness? Draw the AD-AS and IS-LM graph to support your answer. Provide your opinion regarding usage of Monetary Policy on Thai current economic situation
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter14: Money And The Economy
Section: Chapter Questions
Problem 1WNG
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Assuming money demand is stable, explain why an economy that uses inflation target for
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