stabilisation

Publication date: 4 Nov 2015 | Publication type: National Institute Economic Review | External authors: Kimball, M S | JEL classification: E52, E58, E42, E43, E41, E31 | Journal: National Institute Economic Review Issue 234 | Publisher: Sage Publications, London
As long as all interest rates move in tandem – including the rate of return on paper currency – economic theory suggests no important difference between interest rate changes in the positive region and interest rate changes in the negative region. Indeed, in standard models, only the real interest...