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Economics, Fourth Edition
John B. Taylor, Stanford University
Internet Exercises



New Zealand Monetary Policy Rule

Questions: Read the Policy Targets Agreement.
  1. In this chapter, Taylor discusses monetary policy rules. What is the monetary policy rule followed by the Reserve Bank of New Zealand?
  2. How does this rule differ from that pursued by the Federal Reserve Board in the United States?
  3. Explain why Section 3 of this agreement exists.


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