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What is the implication of money supply as a tool of the monetary policy in this economy (model) Model see in the image Consider the

What is the implication of money supply as a tool of the monetary policy in this economy (model)

Model see in the image

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Consider the following log-linear model: mt = Pt + yt Pt = Et-1Pt + o(yt - y*) mt = m + Et where y* is natural output level, m is monetary target

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