ASAP For some months now, the central bank has reduced the attention it pays to the levels ofinterest rates and has kept a close eye on expansion of the money supply. This policy change has made...

ASAP

For some months now, the central bank has reduced the attention it pays to the levels ofinterest rates and has kept a close eye on expansion of the money supply. This policy change has made market interest rates more responsive to the high rate of inflation.

a. Why would this policy change have caused interest rates to become more responsive to the high rate of inflation?

b. Is this a good or a bad thing?