And if one looks throughout the history of our country and other free countries, it is the latter category that tend to be the difficult ones.” Keeping in mind this three-way categorization, let me ask the following question: What kind of information does a central bank policy maker want to know when he or she decides on policy?
And, in what way is it related to the three-way categorization? First of all, in contemplating appropriate aggregate demand management policy, the central bank policy maker wants to know the momentum of activity in the economy and financial markets. However, this is not in itself sufficient.