The ultimate breakdown of constrained discretion is that it does not allow monetary policy makers to commit themselves effectively and robustly to responses to financial turbulence such that market actors are disincentive eyes from engaging in reckless behavior in the first place.

True

False

What has changed procedurally in the Federal Reserve since the crisis?

	A.	Stabilizing prices
	B.	Minor operational reforms
	C.	Easing monetary policy
	D.	Stablizing output

Monetary rules that allow discretion are...

	A.	operational
	B.	binding
	C.	useful for avoiding vagueness
	D.	mere guidelines

Constrained discretion fails for all of the following reasons except...

	A.	is an arbitrary exercise of government power.
	B.	it violates private property rights.
	C.	it violates basic equity ideals.
	D.	it violates individual liberty.

Constrained discretion is

	A.	tacit rules
	B.	discretion
	C.	similar to rules-based policy
	D.	rules in practice

What offset the expansionary actions of the FED following the 2008 crisis?

	A.	inflation
	B.	upward pressure on employment
	C.	paying interest on excess reserves
	D.	increased aggregate demand

The choice of a nominal anchor is of _______ importance.

	A.	primary
	B.	secondary
	C.	tertiary
	D.	no