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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the first cost is that there is a risk that monetary policy will be less effective
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
and monetary policy is a relatively blunt tool with relatively limited scope
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
some have suggested that the slow pace of the economic recovery proves that our unconventional policy tools were ineffective
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
now any institution as important as the federal reserve needs to be scrutinized closely
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
i have been particularly troubled by the fact that widespread misinformation about the federal reserve system is not being exposed and correctedlest there be any misunderstanding let me state specifically that i am not complaining about criticism of the federal reserve
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the federal reserve cannot afford to give low priority to this key goal
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
as a practical matter we probably cant do much right now by monetary policy or otherwise to change ingrained savings behavior
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
consequently monetary actions have been thought to be of little use in any program of economic stabilization
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
recent experience has suggested that monetary growth alone cannot guide our actions
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
of course monetary policy alone can not guarantee such an outcome
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
while this objective is clearly understandable central bank lending can create the expectation that similar support will be forthcoming when market disruptions occur in the future
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
economics as a discipline differs in important ways from science and engineering the latter dealing as they do with inanimate objects rather than willful human beings can often be far more precise in their predictions
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
one risk of waiting is that the committee may be forced to raise rates very quickly to prevent an increase in inflation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
such language was used to describe episodes when the fed was aggressively providing monetary accommodation to stimulate employment and the economy the go phase only to find itself forced to apply the brakes abruptly to prevent a rapid uptick in inflation the stop phase
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
because of the lag of price changes behind changes in the rate of growth of the money stock it probably would be not only months but several years before the adoption of moderate policy actions would have any lasting observable effect on the inflation rate
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the third question the review will consider is how can the fomcs communication of its policy framework and implementation be improved
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
policy implications in setting policy the federal reserve needs to be mindful of the risks to the outlook for both growth and inflation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
nominal interest rates however cannot fall below zero and this fact can pose a problem for monetary policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
as the expansion gains traction the challenge will be to reduce accommodation and normalize policy in a way that ensures that inflation remains close to our target that the economy continues to grow and that we avoid sowing the seeds of another financial crisis
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
a policy focusing on the monetary aggregates must be constrained of course by concern about interest rates
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
unfortunately the science of monetary policy has not progressed to the point where we can specify the optimal rule for setting monetary policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
but at the same time i feel we may be too constrained by the heavy layer of ancient traditions and conventional wisdom that encrusts both academic and central banker views
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
namely it is difficult for some central bankers to tolerate abovetarget inflation even for limited and controlled periods of time
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
but the pro portion of demand deposits held by non member banks has increased to the point where the effectiveness of monetary policy is being affected
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
thus these estimated gaps could easily point monetary policy in the wrong direction at the time decisions have to be made
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
when asked during the july 1996 fomc meeting what level of inflation does not cause distortions to economic decisionmaking chairman greenspan responded zero if inflation is properly measured4 greenspans view that the theoretically correct definition of price stability is zero inflation stems from his belief that economic growth is maximized when the price level is unchanged on average over time5 while i believe that there is a virtual consensus that the economy functions best when the theoretically correct measure of inflation is low not everyone agrees with greenspan that true price stabilitya zero rate of inflation properly measuredis the best target for the fed
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
market commentary often indicates frustration that the fomc does not lay out a clearer path for policy arguing that the fomc is unpredictable
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
what should not change are the objectives of monetary policy in their broadest sense at the present time especially the need to bring down inflation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
it also contributes to additional uncertainty regarding the future course of monetary policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the balance sheet of the federal reserve has more than tripled since the financial crisis in 2008 its widely viewed that the size of the balance sheet is far beyond normal and will have to be scaled back as monetary policy is normalized
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
that pressure could serve to put the central banks independence and its credibility at risk
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
even if we knew what the money supply was could we really control it very accurately
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
when policy is constrained by the effective lower bound the downward shift in inflation expectations raises the real interest rate further diminishing the degree of monetary stimulus making the downturn worse and reducing inflation even more
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
in the absence of such predictability central bank responses to events will often take the market by surprise analysts will think that central bank policy is random idiosyncratic unpredictable mysterious and any of a variety of other adjectives that might be applied
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
as the iconic bernard baruch said so well if economists knew so much they would have all the money and we would have none1 even with the advantages we at the federal reserve have with our access to data and battalions of brilliant economists on our staffs that model and analyze it we are not prescient
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
i have long argued that the committee should be more articulate 4 about its policy reaction function so i fully supported the chairmans comments providing this added information
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
indeed if the federal reserve were to try to limit rising interest rates by increasing supplies of money and credit at an excessive pace the rise in inflation and interest rates that would occur later on would take an even larger tollthe challenge facing monetary policy over the next year or two is a large one
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
on the other hand as i noted if the fed leaves the current level of accommodation in place too long inflationary pressures eventually will build
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
at the same time adding to our balance sheet increases the risk we will have to move quickly when the time comes to normalize monetary policy and begin raising rates
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
and we must be evermindful that the central bank cannot carry the load alone as chairman bernanke and others of us have often said
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
past experience shows that the central bank has a difficult jo b in achieving the sometimes conflicting goals of econom ic growth high employment and a strong dollar at home and abroad
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
monetary policymakers face lots of uncertainties and unknowns regardless of how decisions are reached
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the point being that even the best policy communications wont be able to prevent market swings all the time and policymakers and markets need to understand that
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
my third observation is one 1 really need not make before this monetary policy is not an allpowerful economic stabilization device and good monetary policy does not automatically guarantee full employ ment good growth rates and price stability
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
this would undermine the feds credibility and its ability to conduct monetary policy in the longterm interests of the american public
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
but forecasts come with obvious risks and moving policy on them should be done with careful riskmanagement calculus in mind
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
economics provides considerable guidance on how policymakers should respond but the timing and size of the response is frequently unclear
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we will have failed in our responsibilities as monetary policymakers
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
moreover disclosing or explaining the why of policy actions is obviously complex
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
at some level i really had no idea what i had done or what the consequences would be
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
yet we now know that discretion is generally not optimal
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
ive been telling people that our staff economists at times have made forecasts that overestimate the risks of rising inflation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
of course our understanding of the empirical links between our measures of expected inflation and actual inflation is sufficiently poor that things could well go awry with this forecast
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
in either case the difficult communications task would be to explain the role of economic conditions in determining why sometimes you act and other times you dont
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
of course the prescriptions from economic theory dont always translate cleanly into realworld policymaking
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the bill is not really about an audit in the usual accounting or financial sense of the term since the feds financial statements and indeed its operations in supervision and payment services are already subject to extensive outside audits by the gao the board of governors office of the inspector general and an outside public accounting firm
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
clarity requires that policy have rulelike characteristics
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
at times there is a temptation to provide excessive economic stimulus in the short run and leave the inflationary costs which often are evident only later for future policymakers to deal with
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we do not regard such observations as criticism of our examiners but instead as opportunities to test and possibly adjust our policies to promote overall consistency
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
moreover the fed could create a credibility problem for itself if forward guidance is too specific
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
now then at the end of my remarks let me be 9 quite clear that i do not believe the federal reserve is perfect
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
in the extreme i suppose a central bank could run a marcel marceau monetary policy allowing its actions to convey all its intended meaning
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
on the other hand the robust domestic inflation and the tenacious deficit in our balance of payments will obviously condition the timing and limit the extent of any relaxation in the prevailing policy of monetary restraint
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
what they usually want to know is how can the federal reserve be making such egregious errors
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
simple policy rules also typically neglect information with potentially important implications for the economic outlook because they focus only on where conditions are today
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
this logic suggests central bank independence is an impediment to optimal stabilization policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
for example suppose the central bank controlled money growth directlyindeed there is an extensive literature arguing that this policy is the one central banks should pursue
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
when expectations are not well aligned either policymakers arent communicating the rationale for their own policy views very well or they are communicating but market participants arent buying it
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
in describing the bank of england lanchester writes theres a lot of ritual and ceremony and protocol at the bank which to outsiders seems a cross between hogwarts the death star and the office of ebenezer scrooge1 the same can be said of the federal reserve at least by those who dont take the time to read the copious amounts of reports and speeches and explanations the 12 federal reserve banks and the board of governors continuously emit
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
monetary policy can do little to reverse the effects that the financial crisis may have had on the economys productive potential
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
indeed the committee reached a landmark in the spring of 2003 when the fomc statement acknowledged that it was possible that inflation could become uncomfortably low
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we cannot fine tune because 1 our forecasts of the economy are subject to too much error
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
monetary policy this brings me to a discussion of the recent policy actions the fed has taken why i dissented from these actions in august and september and what i believe should be the longterm view of monetary policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
lack of this information made it more difficult for regulators to decide whether and how to intervene
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
some might argue for example that actions taken by the fomc this year which have resulted in inceases in shortterm interest rates of approximately 250 basis are anything but conducive to these activities
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the federal reserve itself is not immune from these problems as evidenced by its recent announcement that it will be closing 13 checkprocessing operations across the country affecting 1300 jobs
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
indeed some monetary policy mistakes in the past have arisen precisely because too many people believed the myth
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
in a crisis of course monetary authorities are often overwhelmed and lose any control of the foreign exchange value of their domestic currency
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
that important realworld consideration is often neglected in the academic literature in which central bank commitment devices are simply assumed to exist and be instantly credible on decree
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
i could never be the chairman because ive spent a lifetime trying to learn to speak clearly and get to the point
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the miss of the fomcs early 2012 forecast that i referred to earlier was within the interval
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
i want to raise the radical notion that it is time for the industry and regulatory bodies both federal and state to investigate with seriousness the feasibility of seme kind of peer review or self governance
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the fed can do nothing about the fundamental economic forces controlling the destiny of agriculture high productivity growth the hazards of nature the low price and income elasticities of demand and the instability of conditions in important export markets
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
however the legislation views deviations from the reference policy rule as being undesirable
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we tried our best to make fiscal policy work in ways that would reduce unemployment and idle capacity keep the economy operating close to its fullemployment potential and yet avoid periods of excess demand that create fresh inflationary forcesin retrospect our principal mistake was a failure to recognize the severe limitations of aggregate demand management in an economy as complex as our we tried to achieve results that simply could not be realized2supplyside econanics in fiscal policy is a logical canplement to the way in which rronetary policy is currently being conducted
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
for market discipline to be effective we will need to give greater weight to taxpayer risk in making individual loan decisions even in indeed particularly in cases where a bank is both troubled and very largeimplications for discount window administration
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
because the fed appears to an increasing degree to be following a policy of what i have called constrained discretion one must ask is this policy approach consistent with the congresss mandate for monetary policy
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
hence the downside with using monetary policy to stimulate employment is that when employment is near its maximum level further stimulus can lead to unduly high inflation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
thus we have deferred essential changes that could have helped cushioned the economy against the inflationary implications of labor shortages
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
keeping rates on hold looks right for now but the editorial went on … the bank must also worry about its credibility if the public ceases to believe that it will bring inflation back down then it will become much harder to do so2 this risk applies to the fed just as much as it does to the bank of england
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
consequently it may not be desirable or even practically possible to rely on monetary policy alone to combat inflation especially when that problem is aggravated as it has been by heavy deficit financing in a period of high employment
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
but the experience of the financial crisis and deep recession of 20072009 the sluggish ensuing recovery in the labor market and the rounds of unconventional monetary policies used to provide accommodation after the federal funds rate was constrained by the zero lower bound all contributed to the fomcs decision in 2012 to adopt a form of flexible inflation targeting with an explicit numerical inflation goal5 the 2012 strategy recognized that over the longer run monetary policy can influence only inflation and not the underlying real structural aspects of the economy such as the natural rate of unemployment or maximum employment but that monetary policy can be used to help offset shorterrun fluctuations in employment around maximum employment
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the failure of lehman brothers demonstrated that liquidity provision by the federal reserve would not be sufficient to stop the crisis substantial fiscal resources were necessary
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
these same forces have lessened our ability to anticipate the consequences of a buildup of either a surplus or a deficit
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we do know that guiding the economy doesnt work
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the risk of failing to meet our symmetric inflation target let me finish by discussing the need to manage another longerrun strategic risk related to the zero lower bound
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
we missed an excellent opportunity to begin this tapering process in september
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
it is a challenge for policymakers
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
b a district president may mention observations from his own district that contradict the staffs presentation
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You have to determine the opinion a given statement expresses about the reputation of the Bank of England (BoE): POSITIVE NEGATIVE
the study considers few possible future scenarios but concludes that the likelihood of specific future developments is impossible to assess with confidence
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