https://www.youtube.com/watch?v=vsbj2ppq7IQ This video has computer voice recognition generated Closed Captions. They are mostly correct. To activate, click on the CC icon and select from the pop up menu. The video is about the Phillips Curve, not directly about setting interest rate targets. But the purpose of a change in interest rates is to shift the Aggregate Demand Curve and, thereyby, change the inflation rate and the unemployment rate. The Phillips Curve shows you how that works. Week 4: After reading Chapters 20 - 23 consider the following questions for discussion. Sorting through Mixed Signals to Find an Interest Rate Target A central bank finds itself in the following situation: The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing. Nevertheless, the unemployment rate is at its highest level in more than three decades, even though a recent increase in the price level may have signaled that inflation, which has been dormant for several years, could be about to take off again. What factors indicate that the central bank should increase its target for the nominal interest rate? What factors indicate that it should reduce its interest rate target? What should the central bank do? It is required that you make your first post by Thursday. Your total participation throughout the week should consist of AT LEAST 500 words, spread over AT LEAST 3 posts made on three different days. Do not attach your posts. Be sure to respond to follow-up questions that seek clarification from classmates and instructor. Remember to include a word count at the end of each post. The purpose of this exercise is to demonstrate your understanding of the material. Full credit will be awarded for comments that are substantive and original. Now click on the Week 4 Money Talk text link above and go to the discussion forum. You can start a new thread by clicking on the Create Thread button at the top. You can also respond to an existing post by clicking the Respond button at the bottom of the post. Additional Requirements Other Requirements: Need 3 separate post