Question

Monetary policy is asymmetric( like rope) and has a lag.If an economy faces walking inflation, what you should do with the rope,if were the governor of that country's central bank? Why?​

Answer 1

Explanation:

In a purely economic sense, inflation refers to a general increase in price levels due to an increase in the quantity of money; the growth of the money stock increases faster than the level of productivity in the economy. The exact nature of price increases is the subject of much economic debate, but the word inflation narrowly refers to a monetary phenomenon in this context.

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