Modifying Monetary Policy

Modifying Monetary Policy

Some economists have argued that monetary policy has been too tight over the past decades. In your paper, be sure to assess:

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  • What are the stated objectives for the Federal Reserve Board?
  • How does the Taylor rule match up with the Fed’s objectives?

 

  • Given the Fed’s stated objectives, has monetary policy been too tight or too loose? Given your conclusion, does the Fed’s new monetary framework make

 

  • Be sure to indicate your assessment of the efficacy of each of the policy instruments, including unconventional policy

 

You should refer to the assigned reading https://www.brookings.edu/wp-content/uploads/2018/10/WP47- Kuttner.pdf as well as the Fed’s papers on the new monetary policy framework.

 

 

 

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