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3) Do you think the Fed should be given a clearer legislative mandate concerningmacroeconomic goals? If so, what should it be?4) Referring to the Case in Point on targeting, what difference does it make whether thetarget is the inflation rate of the past year or the expected inflation rate over the nextyear?Ans:No, it really makes lots of difference because what was the inflation target last year andhow much it was achieved and achieving that much of inflation, how was the economy
conditions. The reasons for not achieving the targeted inflations need to be understood andfinally the same need to be addressed going forward. Considering the past year inflation rate,the inflation for the next year can be expected and accordingly the same need to be takenforward.