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Lecture Money, Banking & Finance - Lecture 7: Intermediate Targets, Money Supply or Interest rates?
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Lecture Money, Banking & Finance - Lecture 7: Intermediate Targets, Money Supply or Interest rates? Learning objectives of this chapter include: Examine the problems related to the pegging of the rate of interest; examine Friedman’s argument in the context of adaptive expectations; confirm the Sargent- Wallace finding for the instability of an interest rate peg with rational expectations; show that an interest rate target is feasible under RE.
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