Question
We propose the following model of expected inflation: t e = (1 - ) (bar) + t-1 A) Describe the process of formation of expected
We propose the following model of expected inflation: te = (1 - ) (bar) + t-1
A) Describe the process of formation of expected inflation when = 0
B) Describe the process of formation of expected inflation when = 1
C) How do you form your own expectation of inflation? More like A or more like B?
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Macroeconomics
Authors: Olivier J. Blanchard
7th Global Edition
1292160500, 978-1292160504
