Stabilization and the Phillips Curve"
Please respond to the following:
- Discuss which approach you believe is the best way to stabilize the economy: a discretionary policy or a monetary rules approach. Explain your rationale in your response.
- Assess the theory and evidence behind the Phillips curve to determine whether you agree or disagree with Phillip's reasoning
"Active versus Passive Policy"
Please respond to the following:
- Discuss whether you believe an active policy or a passive policy is best. Explain your rationale with your response.
- Discuss how expectations impact policy and the best way to mitigate that impact. Provide specific examples to support your response.