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You are the central banker for a country that is considering the adoption of a new nominal anchor. When you take the position as chairperson,
You are the central banker for a country that is considering the adoption of a new nominal anchor. When you take the position as chairperson, the inflation rate is 4% and your position as the central bank chairperson requires that you achieve a 2.5% inflation target within the next year. The economy's growth in real output is currently 3%. The world real interest rate is currently 1.5%. The currency used in your country is the lira.
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