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Determine the impact on the economy

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1. Discuss the pros and cons of central banks setting policy based on rules as opposed to setting policy based upon the discretion of policymakers at each policy meeting.

2. "Taylor Rule and Inflation Targeting" Please respond to the following: Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.

Reference no: EM131426853

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