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Explain why output is independent from monetary policy in the Barro-Gordon model. Using your analysis, explain the debate around discretion versus rules in monetary policy.

Explain why output is independent from monetary policy in the Barro-Gordon model. Using your analysis, explain the debate around "discretion" versus "rules" in monetary policy.

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In the BarroGordon model named after economists Robert Barro and David Gordon the central focus is on the interaction between monetary policy and expectations The model is built on the premise of rati... blur-text-image

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