Monetary policy reaction function: Difference between revisions

Revision as of 19:57, 8 April 2006

Revision as of 06:18, 13 April 2006

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Where Φ is a parameter that tlls us how much unemployment rises when the [[central bank]] raises the [[real interst rate]] ''r'' because it thinks the [[inflation]] is too high and needs to be deducedreduced.