Lars Svensson, a former Princeton professor and deputy governor of the Swedish central bank, proclaimed that whenan economy is at risk of falling into deflation, centralbankers should be “responsibly irresponsible” with monetary expansion policies. What does this mean, and howdoes it relate to the monetary transmission mechanisms?

Lars Svensson, a former Princeton professor and deputy governor of the Swedish central bank, proclaimed that whenan economy is at risk of falling into deflation, centralbankers should be “responsibly irresponsible” with monetary expansion policies. What does this mean, and howdoes it relate to the monetary transmission mechanisms?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 1CQQ

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