If effectiveness lags are long and variable, should policymakers use the current values or their best forecasts

Question:

If effectiveness lags are long and variable, should policymakers use the current values or their best forecasts of target variables to determine policy? In evaluating the behavior of the Fed between 1994 and 2001, does it seem more likely that current or forecasted values of inflation and output determined their policies?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

Question Posted: