11. Suppose the governor of the Bank of Canada accepts the theory of the short-run Phillips curve...

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11. Suppose the governor of the Bank of Canada accepts the theory of the short-run Phillips curve and the natural-rate hypothesis and wants to keep unemployment close to its natural rate. Unfortunately, because the natural rate of unemployment can change over time, the governor is unsure about the value of the natural rate. What macroeconomic variables do you think the governor should look at when conducting monetary policy?

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Principles Of Macroeconomics

ISBN: 9780176591977

7th Canadian Edition

Authors: N. Mankiw, Ronald Kneebone, Kenneth McKenzie

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