24. Prospects Rise for Fed Easing Policy William Dudley, president of the New York Fed, raised the...
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24. Prospects Rise for Fed Easing Policy William Dudley, president of the New York Fed, raised the prospect of the Fed becoming more explicit about its inflation goal to “help anchor inflation expectations at the desired rate.” Source: ft.com, October 1, 2010
a. What monetary policy strategy is Mr Dudley raising?
b. How does inflation rate targeting work and why might it “help anchor inflation expectations at the desired rate”?
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QUATERNARY Pursuing M.Tech.(2017-2019) in Electronics and Communication Engg. (VLSI DESIGN) from
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