Solution Library

Taylor’s Rule as guideline for monetary policy

  Question: In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?   Summary :The pros and cons of forecasted values of inflation using Taylor’s ... Read More

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Difficulty of the Federal Reserve to adopt inflation targeting

  Question: Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment?   Summary: Inflation targeting and the difficulty for the Federal Reserve in adopting infl ... Read More

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Similar Economic Crisis for Japan and US

  Question: What can we learn from the Japanese experience? Is the US headed for a ‘lost decade?   Summary:The similarities in the recent meltdown of economies in both the US and Japan suggest a similar fat to the US, which has already been seen by the Japanese. But, unlike t ... Read More

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Failure of “Super Committee” good for the US economy

  Question: Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?   Summary: The failure of “Super Committee” and the consequences have been discussed in the answer.    Wor ... Read More

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Devaluation of the Dollar

Summary: The article discusses about the causes and impact of devaluation of the dollar in American and the global economy. The report specifically determines the advantages and disadvantages of dollar devaluation and its impact on the import and export oriented transactions. Also the study point ... Read More

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