Maurice Tutor

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Category > Economics Posted 13 May 2018 My Price 2.00

role of a sunspot

Suppose that money plays the role of a sunspot variable in the coordination failure model, so that the economy is in the bad equilibrium when the money supply is low and in the good equilibrium when the money supply is high. Explain what the monetary authority could do to make consumers better off. Compare this prescription for monetary policy with the one coming from the money surprise model, and discuss.

 

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Maurice Tutor
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Status NEW Posted 13 May 2018 01:05 PM My Price 2.00

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