Discuss why does a central bank need a monetary policy


1. Explain why does a central bank need a monetary policy target? What does the Fed seem to be relying on now as its primary target to guide monetary policy?

2. Explain the Quantity Theory of Money and the Equation of Exchange. Under the Quantity Theory how will the doubling of the money supply impact the price level and employment?

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Macroeconomics: Discuss why does a central bank need a monetary policy
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