Monetary theory implicitly assumes that the interest rates and the money stock are uniquely linked so that

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Monetary theory implicitly assumes that the interest rates and the money stock are uniquely linked so that changes in one have a corresponding counterpart in the other, so that it does not matter which one the central bank chooses to change. What assumptions are needed for this assertion? Are they realistic enough for policy purposes?

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Monetary Economics

ISBN: 9780415772099

2nd Edition

Authors: Jagdish Handa

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