AFE5022-B: Intermediate Macroeconomics - Accounting, Finance and Economics - Essay Writing Assignment Help

Economics Essay Writing Assignment Help

1.  Using the model of rational expectation, explain what time-inconsistency problem is. What role does it play in the debate between discretionary and ‘by rule’ conduct of economic policy? Support your discussion with diagrams.
2.  Immediately after the central bank of New Zealand adopted inflation targeting in 1989, economic growth was low and unemployment increased for some time (until 1992), but later, economic growth resumed and unemployment decreased. Comment on these empirical evidence with reference to the role of credibility in policy making. Support your discussion with diagrams.

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