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Assume the equilibrium in the market for central bank money is given by the following equation: =0Y [1-(+)] Where, Y (Real GDP) - 10000,
Assume the equilibrium in the market for central bank money is given by the following equation: =0Y [1-(+)] Where, Y (Real GDP) - 10000, r (real interest rate) = 0.1, 0 (reserve ratio) = 0.1 and (expected inflation) = 25%. What is the amount of seignorage if the annual high- powered money growth is 25%?
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Macroeconomics
Authors: Olivier J. Blanchard
7th Global Edition
1292160500, 978-1292160504
