Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 34

"The problem wasn't having the wrong idea about interest rates," a sheepish central bank official says at a conference, "but rather not having the right idea about inflation rates." What does the official mean? How does the inflation rate affect the central bank's interest rate target, and how can a wrong prediction about inflation make monetary policy go awry?