In addition to the two scenarios in Question 3, what other policy options are available for the Swiss authorities if they want to achieve BP=0? Discuss the pros and cons of each approach.
Macroeconomics: Theory and applications Read the following brief text carefully before starting to answer the questions. In response to the 2007-08 Global Financial Crisis and the subsequent economic recession in the rest of the world, central banks in most advanced economies conducted expansionary monetary policies. This often involved cutting policy rates and increasing domestic money […]