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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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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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Challenges triggered by the current economic and financial crisis are multiple. In the short term the main challenge is finding solutions that will restore investor confidence and long-term consumatorilor.Pe, the main challenge is to adjust the principles that guide the international financial...
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shows the responses of exchange rate, inflation rate, GDP, interest rate, imports and exports to a shock on non …
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rates adopted by the European Central Bank in order to control the inflation rate and to stabilize a specific currency, in … this case, the Euro. Stabilizing the inflation rate to certain levels is the main goal of the monetary policy. The monetary … needs to be combated, or contractionary, when inflation is conbated byt raising the interest rates. …
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