“Explain how the time inconsistency of optimal monetary policy can lead to a stabilisation bias. How would the introduction of a price path target help to address it?”
After reading the question three times, I still couldn’t make sense of…
“Explain how the time inconsistency of optimal monetary policy can lead to a stabilisation bias. How would the introduction of a price path target help to address it?”
After reading the question three times, I still couldn’t make sense of…