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2 points Believers in fixed rules maintain that With accurate forecasts, we can see inflation...

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Accounting

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2 points Believers in fixed rules maintain that With accurate forecasts, we can see inflation coming at least one year ahead of time. the length of stabilization lags is not important because fiscal policy actions are taken quickly and the economy feels the effect on ageregate demand quickly. We should forget about discretionary policy and put the economy on autopilot, relying instead on automatic stabilizers and the econorny's self-correcting mechanism. the economy's self-correcting mechanism is slow and not very rellable, even with automatic stabilizers

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