Two central banks increase their refinancing rates by 50bp. The consequence in country A is that the
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Two central banks increase their refinancing rates by 50bp. The consequence in country A is that the whole yield curve shifts upward by c.50bp. In country B, the yield curve is unchanged at the short end and falls at the long end by 30bp. What conclusion do you draw about the credibility and openness of the two banks?
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Monetary Economics Policy And Its Theoretical Basis
ISBN: 9780333792551
1st Edition
Authors: Keith Bain, Peter Howells
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