In the simple monetary policy rule, a large $\bar { m }$
means that the central bank is aggressively fighting inflation.

Name: In the simple monetary policy rule, a large $\bar { m }$ means that the central bank is aggressively fighting inflation.
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Question

In the simple monetary policy rule, a large $\bar { m }$ 
means that the central bank is aggressively fighting inflation.

Quizplus · Accepted Answer

A large $\bar { m }$ means that the central bank is raising the target for the money supply, which will lead to an increase in inflation. Therefore, the central bank is not aggressively fighting inflation.

In the Simple Monetary Policy Rule, a Large mˉ\bar { m }mˉ

In the Simple Monetary Policy Rule, a Large $\bar { m }$