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We consider the properties of two monetary policy rules ("strict inflation targeting", "constant money growth rule") in … nominal terms. Under a constant money growth rule which allows for temporary deviations of inflation from target in response … required under a constant money growth rule. …
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The official view on ECB monetary policy claims that monetary decisions are based solely on average data for the euro zone and that diverging regional developments are disregarded. However, experience from other two tier central banks and theoretical considerations suggest that this official...
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