Chapter

riVE DEBATES OVER MACROECONOMIC Pfi'.ICY_222.

Should Monetary and fiscal Policymakers Try to Stabilize the Economy? 83«

Pro: Policymakers ShouU Try to Stabilize the

Economy 830 Con; Policymakers Should Not Try to Stabilize the Economy 830

my.,.1,1 m..,.t|.m> f'-'j.v ky by km't "'-,'p by PiKirtinn? til

I'lv, NiiTr.1,^11 SvnM IV Mihi'- h Kill.- s'? Con: Monetary Policy Should Not Br Mad* by Rulr 833 IN THE NEWS Inflation Targeting 834

Should the Central Bank Aim for Zero Inflation? S35

I*i■ ■ 'V< i'l'li i' liii'i' I ■'. -'n I /111" Irllii'iiHi tifr-

Coir Tu- f i-nlnl K.m'i Sot -Mm ti- /i-ni l.ll'..1tilT. h'.T

Should I he Government Balance It» Budget? 838

Pro: The Government Should Balance It» Budget 83« Con: The Government Should Not Balance I» Budget 84(1

Should Ihe Tax Laws Be Reformed to Encourage Saving? Ml

Pr<x The Tax law* Should Be Reformed to Encourmg« Saving 841

IN THE NEWS Dealing with [>e1icits 842

Con: The Tax Law* Should Not Bc Reformcd to EiMXMirag* Saving 8-14

Conclusion 843

Summjiy_iiu

Questions for Review 6-k> Problems and Applications $17

Glonary 849

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