Question
a) Explain the inflation bias problem under discretionary policy. b) Discuss how Central Banks can deal with this problem. Use one Central bank (Bank of
a) Explain the inflation bias problem under discretionary policy.
b) Discuss how Central Banks can deal with this problem. Use one Central bank (Bank of England, Fed or ECB) as example and discuss how its design helps to alleviate the inflation bias problem.
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Principles Of Microeconomics 3e By OpenStax
Authors: OpenStax
3rd Edition
1711471496, 978-1711471495
