Macroeconomics
10th Edition
ISBN: 9781319105990
Author: Mankiw, N. Gregory.
Publisher: Worth Publishers,
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Question
Chapter 16, Problem 5QR
To determine
Explain the role of policy rule to solve the problem of time inconsistency.
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Define “time inconsistency” of economic policy?
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a. Define “time inconsistency” of economic policy?
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ii) In this situation, what is the advantage of a policyrule?
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