Advantages and disadvantages of foreign exchange rate target

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Briefly discuss the advantages and disadvantages of foreign exchange rate targeting.

Briefly describe the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.

Briefly explain the advantages and disadvantages for each target the Fed can use to anchor monetary policy, i.e. inflation target, money target, or implicit anchor.

Briefly describe the criteria for choosing a monetary policy instrument.

 

Reference no: EM1373890

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