Discussion Post: Debates in Macroeconomics
This Discussion deals with the debates over macroeconomic policy, which include stabilization policy, monetary policy on rules versus discretion, zero inflation target, public debt, and reforming tax laws.
There are pros and cons of using monetary and fiscal policy tools to stabilize the economy.
• Explain the main arguments in favor of economic stabilization during recessions. Explain why policy lags could make stabilization policies counterproductive.
• What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.