Which statement is a point of the Great Moderation consensus? I. Monetary policy should be the main stabilization policy.
II) The central bank should be independent of political influence.
III) Discretionary fiscal policy should be used sparingly.
A) I only
B) II only
C) III only
D) I, II, and III

Question

Quizplus · Accepted Answer

The Great Moderation consensus includes all three statements: (I) monetary policy should be the main stabilization policy, (II) the central bank should be independent of political influence, and (III) discretionary fiscal policy should be used sparingly. This consensus was reached among economists and policymakers in the 1990s and early 2000s, in response to the experience of relatively stable economic growth and low inflation in many developed countries during that period.

Which Statement Is a Point of the Great Moderation Consensus