Question

I need answers of question 3 and 4.

1. 151 The graphic below shows actual inflation (this is labeled headline inflation" in the chart) and inflation targets for a number of countries in 2014 September 2014 or ltest Seeden South Korea Japan India Using only information in the chart and frameworks developed in this class (i.e., not subsequent events), please answer the following questions a. [5 points] At the time of the chart, which monetary policy would you have recommended for Sweden? Please explain in 1 2 sentences b. [5 points] At the time of the chart, which monetary policy would you have recommended for Brazil? Please explain in 1-2 sentences. c. [5 points] If both Japan and China were to achieve their inflation targets, what do you expect would happen to the value of the Japanese Yen relative to the Chinese RMB in the long run? Please select one and explain in 1-2 sentences. The Yen will appreciate The Yen will depreciate 2. 1201 A recent issue of the Economist magazine reports that Brazil has a fiscal budget deficit of 7% of GDP The current account deficit is 1% of GDP. The current inflation rate in Brazil is 4% (about the inflation target). The current unemployment rate in Brazil is 11.6%, which is higher than the long run average. The Brazilian government is attempting to reduce the fiscal budget deficit.

Answer 1

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