Monetary policy is as much an art as it is a science." Is this statement favoring the use of policy rules or discretionary policy? Explain why. Discuss why monetary policy may be as much an art as it is a science and illustrate using specific examples. In replies to peers, debate the ideas presented and support your thoughts using your understanding of the topic Resources and outside resources.
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- Please select ONE of the following questions as your discussion topic and respond with a paragraph or two that directly answers the question AND makes reference to class materials. For full credit, you must also respond to the posts of at least two of your classmates. 1. The Federal Reserve Board has enormous power over people's lives with its power to set and influence policy that determines monetary policy in the United States. Do you think this is proper for a democracy to provide the FED with so such power? How is the FED held accountable?a) Identify the four major tools of monetary policy. b) How can monetary policy address the problem of inflation?The central bank of Grenada decides to pursue anexpansionary monetary policy. (i) Identify one possible action they could take. (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (iii) Illustrate the overall impact of the chosen action on the money market.
- Explain the tools of Monetary Policy. With a table and exampleDiscuss the concept of "monetary policy". Explain the types of monetary policies and the means to affect them.The central bank of Barbados decides to pursue anexpansionary monetary policy. (i) Identify one possible action they could take. (ii) Carefully explain, in as much detail as possible, how the chosen action will impact the money market. (iii) Illustrate the overall impact of the chosen action on the money market.
- Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Workers produced 4% more output per hour last year.”Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Deposits in U.S. banks fell in 2015.”Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Deflation grips the economy and households put off shopping”
- Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. Prices of most consumer goods rose 12% last year.”Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Real GDP increased 32% in the last decade.”Do not give written explanations. Provide graphical solutions, circled answers or solve mathematical problems (show ALL work) Much economic news we read about can be reinterpreted into our “M v = P Y” Take each of the following news headlines below and determine that event changes (increase or decrease) in: M or v or P or Y based on your understanding of monetary theory. You answer each situation by simply listing the one variable from the equation you think has changed—only ONE. Use and upward or downward arrow next to the one variable to indicate if the change was an increase or decrease. “Deposits in U.S. banks fell in 2015.” “American businesses are spending faster than ever.” “Prices of most consumer goods rose 12% last year.” “Workers produced 4% more output per hour last year.” “Real GDP increased 32% in the last decade.” “Deflation grips the economy and households put off shopping” “A hyperinflation grips the US and people try to spend before prices…