Chapter 18 Monetary Policy104.Consider the desirable features of monetary policy operating instruments and the use of intermediate targets. What feature didn't exist that makes a target intermediate rather than operating and what feature not present had the Fed abandon the use of most intermediate targets?
LOD: 3 Page: 479 A-Head: Linking Tools to Objectives: Making Choices.105.Consider the objective of flying a jet form New York to Paris. After takeoff, a pilot would certainly check a few times to see if they are on course. Using this example, discuss why, at least in theory, intermediate monetary policy targets may be useful.
LOD: 3 Page: 478 A-Head: Linking Tools to Objectives: Making Choices.Cecchetti: Money, Banking, and Financial Markets566