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Modern monetary policy focuses on credibility and shaping consumers' inflation expectations. According to the concept of inflation forecast targeting (IFT), inflation forecasts play a crucial role in the instrument rate decision-making process and may be a specific intermediate target. The aim...
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real activity, is regarded as the maintained theory of inflation. Models of inflation without the output gap include the … equation of exchange of the quantity theory of money, the real interest rate gap, and two versions of the model. Since none of …
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