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Essay

Discretionary policy

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Issue:

Business

 

Written by:

Betty R

 

Date added:

April 23, 2016

 

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Grade:

A

 

No of pages / words:

2 / 337

 

Was viewed:

5058 times

 

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Essay content:

Taylor that would stipulate how much the Federal Reserve should change the interest rates in response to real divergences of real GDP from potential GDP and divergences of actual rates of inflation from a target rate of inflation. Discretionary policies are similar to "feedback-rule policies" used by the Federal Reserve to achieve price level stability...
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Discretionary policies are similar to "feedback-rule policies" used by the Federal Reserve to achieve price level stability. "Discretionary policies" refer to actions taken in response to changes in the economy, but they do not follow a strict set of rules, rather, they use subjective judgment to treat each situation in unique manner...
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