Discuss how expectations impact policy

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Stabilization and the Phillips Curve"

Please respond to the following:

  • Discuss which approach you believe is the best way to stabilize the economy: a discretionary policy or a monetary rules approach. Explain your rationale in your response.
  • Assess the theory and evidence behind the Phillips curve to determine whether you agree or disagree with Phillip's reasoning

"Active versus Passive Policy"

Please respond to the following:

  • Discuss whether you believe an active policy or a passive policy is best. Explain your rationale with your response.
  • Discuss how expectations impact policy and the best way to mitigate that impact. Provide specific examples to support your response.

Reference no: EM13762275

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