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10 H ) Policy makers have changed their focus from keeping inflation from getting too high...

10 H )

Policy makers have changed their focus from keeping inflation from getting too high to keeping inflation from getting too low because

historically there has been asset deflation and now there is asset inflation.
during the financial crisis of 2008 there was asset deflation which can lead to overall deflation.
technology has changed the structural economy so much that asset inflation is no longer a concern.
during the financial crisis of 2008 there was asset deflation which can lead to overall inflation.

________________________________________________________

A zero interest rate lower bound is associated with

unconventional, but not with conventional, monetary policy in which targeted inflation can drive nominal interest rates to be negative.
conventional, but not with unconventional, monetary policy in which deliberate inflation can drive nominal interest rates to be negative.
unconventional, but not with conventional, monetary policy in which targeted inflation can drive real interest rates to be negative.
conventional, but not with unconventional, monetary policy in which deliberate inflation can drive real interest rates to be negative.
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Answer #1

Ans) the correct option is b) during the financial crisis of 2008 there was asset deflation which can lead to overall deflation.

Ans) the correct option is d) conventional, but not with unconventional, monetary policy in which deliberate inflation can drive nominal interest rates to be negative.

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