Using the below Websites, tell us what is targeting and as a Monetarist, what is

Question

Using the below Websites, tell us what is targeting and as a Monetarist, what is Fed Chairman Ben Bernanke philosophy in trying to steer off inflation and the proper running of the US economy. And what is Targeting Inflation mean to Ben Bernanke? How does monetarism differ from Interest Targeting (or is Inflation Targeting different than Interest Targeting. http://www.businessweek.com/magazine/content/05_45/b3958601.htm http://www.investmentu.com/IUEL/2006/20060829.html http://www.businessweek.com/magazine/content/05_45/b3958601.htm

Explanation / Answer

Every economy needs to have a monetary policy targetting to regulate and control money supply in the country to keep inflation , pricing and interest in balance. According to Ben inflation targeting will impact the portfolio investors and also to keep the prices of the economy stable and under control.Also due to fall in inflation the stocks can again flourish as investors can gain better returns in a bullish market.But not always such economic predictions turn out to be true as they have failed in 1920's also depending upon the market reaction and financial market stability.

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