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elements of preferred-habitat theory as well as the fiscal theory of the price level …
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taken by domestic agents. The Portfolio Theory of Inflation (PTI) developed in this study assumes that some critical …
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The Portfolio Theory of Inflation (PIT) proposed in this study investigates the role of global financial markets in …
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We analyze optimal monetary policy and its implications for asset prices, when aggregate demand has inertia and responds to asset prices with a lag. If there is a negative output gap, the central bank optimally overshoots aggregate asset prices (asset prices are initially pushed above their...
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