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The concept of the natural rate of interest, or r*, has risen to prominence in monetary policy following the Great Financial Crisis. No doubt a key reason for the concept's newfound prominence has been the further decline of real and nominal interest rates to new lows, which has further...
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comparing Wicksell's theory of price level determination in a pure credit economy, the "cumulative process", to the neo … stability with a reformed financial system that maintains credit stability. The paper uses empirical evidence from Sweden and …
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