Macroeconomics Answers

Explain the dynamics of financial crisis.

What is inflation targeting? Elaborate its usefulness in the short-run and the medium-run.

Since the effects of policy are uncertain, more active policies lead to more uncertainty. 

Explain this statement in the context of using monetary policy as a tool to expand output 

during recession.

What is inflation targeting? How the target inflation rate can be achieved by central banks

using Tylore rule?

“Inflation is always and everywhere a monetary phenomenon”. Discuss.

Discuss the Real Business Cycle model. Does the global economic crisis of 2007-09

support this model?

Critically analyze the New Keynesian approach to explain business cycles.

“According to New Keynesians small nominal rigidities have large macroeconomic effects”. Discuss the above statement.

Write this production function as a relation between output per worker and capital per worker.