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 Kuttner.pdf as well as the Fed’s papers on the new monetary policy framework.





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