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Thu 6 Mar, 2014 02:49 pm
Hi everyone! Would you please help me out with this:
I need to graphically demonstrate how the European Central Bank and the Bank of England differ in terms of inflation targeting. More specifically, the difference between symmetric and asymmetric inflation targets (BoE and ECB, respectively). Can someone please show me how to use the standard IS-LM model to illustrate the difference. Thanks!