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In early 2020, the short term interest rate in China was 2.45 % and forecast Chinese inflation was 4.5%. At the same time, short-term Australian
In early 2020, the short term interest rate in China was 2.45 % and forecast Chinese inflation was 4.5%. At the same time, short-term Australian interest rate was 0.90% and forecast Australia inflation was 1.90%. Based on these figures, what were the real interest rates in China and Australia? To what would you attribute any discrepancy in real rates between China and Australia?
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