Chapter organization Temporary Changes in Monetary and Fiscal Policy a Inflation Bias and Other Problems of policy Formulation a Permanent Shifts in Monetary and Fiscal Policy Macroeconomic Policies and the current account Gradual Trade Flow Adjustment and Current Account Dynamics Summary Copyright C 2003 Pearson Education, Inc Slide 16-3Copyright © 2003 Pearson Education, Inc. Slide 16-3 ▪ Temporary Changes in Monetary and Fiscal Policy ▪ Inflation Bias and Other Problems of Policy Formulation ▪ Permanent Shifts in Monetary and Fiscal Policy ▪ Macroeconomic Policies and the Current Account ▪ Gradual Trade Flow Adjustment and Current Account Dynamics ▪ Summary Chapter Organization