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Author Question: Interest rate targeting may be problematic when (Read 108 times)

2125004343

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Interest rate targeting may be problematic when
◦ the central bank engages in open market operations.
◦ the central bank cannot distinguish shocks to money demand from shocks to total factor productivity.
◦ the central bank cannot distinguish shocks to money supply from shocks to money demand.
◦ there is a large fraction of lenders in the economy.
◦ there is a large fraction of borrowers in the economy.


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Marked as best answer by 2125004343 on Jan 2, 2020

aadams68

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2125004343

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Reply 2 on: Jan 2, 2020
Great answer, keep it coming :)


sultansheikh

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Reply 3 on: Yesterday
:D TYSM

 

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