“Explain how the time inconsistency of optimal monetary policy can lead to a stabilisation bias. How would the introduction of a price path target help to address it?”
After reading the question three times, I still couldn’t make sense of it. I groaned, went back to the textbook, tried to read, made a cup of tea, and tried again. Nothing improved my focus. Then my phone lit up with a message from my friend Anisa: a picture of my name spelled out in Scrabble letters.
