3. It is not that the demand for lending has become less sensitive to changes in relative...
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3. ‘It is not that the demand for lending has become less sensitive to changes in relative interest rates. If anything, it has become more so. The problem lies in the increasing inability of the authorities to cause changes in relative rates by changing the level of absolute rates.’ (Goodhart, 1984). Explain how this situation has come about.
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Monetary Economics Policy And Its Theoretical Basis
ISBN: 9780333792551
1st Edition
Authors: Keith Bain, Peter Howells
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