Solved: Advantages-disadvantages of foreign exchange rate targeting, Macroeconomics

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Advantages-disadvantages of foreign exchange rate targeting

Question 1: Briefly state the advantages and disadvantages of foreign exchange rate targeting.

Question 2: Briefly state the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.

Question 3: Briefly state the advantages and disadvantages for each target the Fed can use to anchor monetary policy, i.e. inflation target, money target, or implicit anchor.

Question 4: Briefly describe the criteria for choosing a monetary policy instrument.

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Macroeconomics: Advantages-disadvantages of foreign exchange rate targeting

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