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, euro area and UK data points to a substantial deviation from that invariance prediction: expectations of interest rate …
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, euro area and UK data points to a substantial deviation from that invariance prediction: expectations of interest rate …
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We study whether a central bank should deviate from its objective of price stability to promote financial stability. We tackle this question within a textbook New Keynesian model augmented with capital accumulation and microfounded endogenous financial crises. We compare several interest rate...
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