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Author Question: Explain why in practice policy coordination is hard to achieve. What will be an ideal ... (Read 83 times)

Themember4

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on: Jun 30, 2018
Explain why in practice policy coordination is hard to achieve.
 
  What will be an ideal response?

Question 2

Suppose the Phillips curve is represented by the following equation: t - t-1 = 20 - 2ut. Given this information, we know that the natural rate of unemployment in this economy is
 
  A) 10.
  B) 20.
  C) 6.5.
  D) 5.
  E) none of the above


ttt030911

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Reply #1 on: Jun 30, 2018
Answer to Question 1

One of reasons is that some countries might have to do more than others and may not want to do so. Second, countries have a strong incentive to promise to coordinate and then not deliver on that promise. Only when things are really bad, does coordination appear to take hold.

Answer to Question 2

A


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