Assuming velocity were constant, could an open economy with a fixed exchange rate follow a money growth rule successfully if capital moved freely across its borders?
Recently Asked Questions
- Draw a hypothetical diagram of the AD-AS model of macroeconomics and explain the source of accelerating inflation. Provide historical evidence as an example.
- Briefly describe the theory of the Phillips curve (PC) and its origin of development as a theory.
- Suppose the Fed is maintaining a growth rate of money supply M2 at 8% per year for a three-year period. If the long term RGDP growth rate is assumed to be a