...Introduction During recent decades, inflation targeting has become one of the most significant developments in both the theory and the practice of monetary policy. An increasing number of central banks around the world have adopted this strategy as the basic framework governing their respective monetary policies (Friedman, 2004). As this trend has become hot, however, problems arises. A question worth discussing derives from those problems is that how to evaluate the monetary policy conducted by an inflation-targeting central bank. There is a view that the evaluation should not base on simply comparing the actual values for inflation with the inflation target. The reasons for this opinion is quite obvious: first, no central bank has complete control over inflation; second, in practice all central banks also care about stabilising economic activity. In the following sections of this essay, we will first consider the central bank’s responses to a temporary demand shock in detail, and then the case of an inflation shock. A conclusion will be given at the end. A temporary demand shock Assume that there are no productivity or inflation shocks (at=ut=0), and a demand gt shock with persistence µ < 1 takes place at time 0. The natural real interest rate is given by rtn=r+φ-1gt. Substitute MPR into IS curve with the information above, and then use the method of undetermined coefficients, we can have: xt=bggt bg>0 πt-π=cggt cg>0 With the two coefficients...
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...Module number one: 1.1 Benefits of online advertising and Adworks: So this lets you show yours ads to people who are interested in the same kind of products. And don’t show those to the ones that are not. Also you can track those who clicked your ads. Benefits of google adworks: adwords is about showing your ads to the right people in the right place at the right time. 1. Target your ads: specific interests. You can make your marketing campaings more targeted. a. Keywords: words or phrases relevant to your products or services. So when customers type those words it will show em your websites. b. Ad location: you can show your ads in search engines, commercial sites, or personal sites. c. Age, location, language: you chose that depends on the customers. d. Days, times, frecuency: you decide when to show your ads. e. Devices: you chose which devices or maybe all of them. 2. Control your costs: gives you control on how to spend your money. You only pay when someone licks your ad. 3. Measure success: it will allow you to see which ads are being clicked the most. And of course give you an idea in which ads to invest more. Also, you can learn on how long do customers take to purchase something. 4. Manage your campaings: MCC allows you to manage all accounts in just one location. i. You can also use adwords editors. 1.2 Google Advertising networks: the google search network and the google...
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