2007-11-28 16:07:02 · 3 answers · asked by worksopians 1 in Social Science ➔ Economics
''The argument for central bank independence is tha governments are poor at managing their economies, providing monetary accommodation not only for their deficits, but also for wage claims, oil shocks and so on.''
Reference:The financial time guide to using the financial, fifth edition, page pg.53
2007-11-28 16:14:53 · update #1
When an economy is experiencing inflation due to external events the monetary authority can increase the money supply to keep keep the event from influencing economic activity (accommodation) or it can try to control the inflationary effect by keeping the money growth rate at real GDP growth rate. During the 70's in the US the Fed accommodated and the result was high inflation that damaged economic growth anyway so since then they have not accommodated and had tight monetary policies during the 80's to keep the government deficits from causing inflation.
2007-11-28 19:03:02 · answer #1 · answered by meg 7 · 0⤊ 0⤋
Which word do you not understand?
It's a fancy way of saying you are paying for something.
2007-11-28 16:12:12 · answer #2 · answered by Phoenix Quill 7 · 0⤊ 0⤋
Payment for something.
2007-11-28 16:09:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋