Which of the following is NOT TRUE, among the possible challenges faced by Central Bankers when setting monetary policy? (Answer accordingly to what the model develop in class would predict)
O Price shocks are able to cause long-lasting changes in inflation that need to be addressed by monetary policy.
O Computed potential GDP depends on the model used, thus being subject to debate.
O If inflation this year is only influenced by demand conditions today, then it will have NO persistence.
