Economics Homework Help
Economics Homework Help. Boston University Whats the Correct Orientation of Monetary Policy Discussion
Discussion 6 What’s the Correct Orientation of Monetary Policy? |
In some countries the central bank is mandated to use monetary policy to keep inflation to a reasonable, targeted range (say, between, 1% and 2.5%). In other countries the central bank is charged with maintaining growth and stability in the economy with a wider range of objectives – encourage economic growth, maintain low inflation, keep unemployment levels low, stabilize the value of the currency, etc. Comment on the relative virtues and problems of addressing a single (inflation) objective or multiple (growth, inflation, employment, currency value) objectives. |
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