A policy of discretion gives central bank the ability to react to news about the economy In this light discuss whether discretion is a better way to run monetary policy than following a rule

The econometric discretion policy evaluate on fiscal and monetary policy by using the new rational expectation method of macroeconomics. This

In conditions of perfect capital mobility and floating exchange rate fiscal policy is likely to be ineffective while monetary policy may be effective in achieving internal and external balance

This paper shall discuss the Mundell-Fleming Model as applied to a specific condition of floating exchange rates in an open