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Active versus Passive Policy

ECO 102 WEEK 10 DISCUSSION Discussion 1 “Active versus Passive Policy” Please respond to the following: a) Discuss whether you believe an active policy or a passive policy is best. Explain your rationale with your response. b) Discuss how expectations impact policy and the best way to mitigate that impact. Provide specific examples to support your response. Discussion 2 “Stabilization and the Phillips Curve” Please respond to the following: a) Discuss which approach you believe is the best way to stabilize the economy: a discretionary policy or a monetary rules approach. Explain your rationale in your response. b) Assess the theory and evidence behind the Phillips curve to determine whether you agree or disagree with Phillip’s reasoning. Explain your rationale in your response.

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