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Derive the optimal values of inflation and the output gap under discretionary policy making. Describe how the nominal interest rate will respond to movements in
Derive the optimal values of inflation and the output gap under discretionary policy making. Describe how the nominal interest rate will respond to movements in the natural rate of interest
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A real interest rate is an interest charge that has been adjusted to put off the effects of inflation to mirror the actual cost of finances to the borrower and the real yield to the lender or to an in...
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
