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The monetary policy decision, as any other decision, is the product of a procedure assembling a lot of primary information, but also what type of other ingredients contribute finally to a certain monetary policy decision.
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Monetary policy should be guided by macroeconomic models with limited nominal rigidity – ‘New Classical’ or even for some issues just plain Classical (i.e. with no nominal rigidity at all) models are perfectly adequate for understanding various aspects of the economy that have previously...
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