It is plain to see that discretion is a better way to run monetary policy than following

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“It is plain to see that discretion is a better way to run monetary policy than following a rule because a policy of discretion gives the central bank the ability to react to news about the economy.” What is the monetarist response to this statement? What is the more recent argument for using rules rather than discretion?

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Macroeconomics

ISBN: 126168

8th Edition

Authors: Abel, Andrew B;Bernanke, Ben S;Croushore, Dean

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