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The actions of the Fed described above demonstrate an important principle of monetary policy, while the example of India in 2018-2019 shows the opposite. a)
The actions of the Fed described above demonstrate an important principle of monetary policy, while the example of India in 2018-2019 shows the opposite. a) What is this principle, and why is it important? Make sure your explanation refers to the relevant concepts and models from the course. b) What are the potential consequences for the economy when that principle is violated? What types of macroeconomic measures or statistics would you keep tracking to assess whether this was happening? Explain
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