A credible nominal anchor A) can help overcome the time-inconsistency
A credible nominal anchor
A) can help overcome the time-inconsistency problem by providing an expected constraint on discretionary policy.
B) can help to anchor inflation expectations, which leads to smaller fluctuations in inflation.
C) is required for a policy rule.
D) all of the above.
E) both A and B.
ANSWER
E
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.