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Why are many economists skeptical of the Fed's ability to fine tune the economy?

kolitchko

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Why are many economists skeptical of the Fed's ability to fine tune the economy?

Why are many economists skeptical of the Fed's ability to fine tune the economy?
A) Monetary policy only affects output in the long run.
B) Lags in policy make it difficult to properly time policy.
C) Fiscal policy can be implemented more quickly than monetary policy.
D) Monetary policy does not have any effect on output.

Textbook

Money, Banking, and the Financial System

Money, Banking, and the Financial System

Edition: 3^rd

Authors: Hubbard, O'Brien

Read 37 times

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vehmein

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kolitchko Author

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Thank you, thank you, thank you!

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