Question:

Whats so bad about a variable time lag with monetary policy?

by Guest57127  |  earlier

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"Also, the lagged effect of monetary policy is also variable, as different sectors of the economy will be affected to different degrees, depending on their interest rate elasticity"--->>so what?

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  1. Uncertainty for the investment community and financial institutes.  It kind of points out the effects of intangibles on economics.  If it was an exact science it would be much easier.

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