Response of Monetary Policy to Shocks  Monetary policy should try to minimize the difference between inflation and the inflation target  In the case
{"Image DocumentName": "Response of Monetary Policy to Shocks", "Image ImageDescription": "Monetary policy should try to minimize the difference between inflation and the inflation target. In the case of both demand shocks and permanent supply shocks, policy makers can simultaneously pursue price stability and stability in economic activity. Following a temporary supply shock, however, policy makers can achieve either price stability or economic activity stability, but not both. This tradeoff poses a dilemma for central banks with dual mandates.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}