35Chp5-Econ3310 - Asset Demand Equilibrium Interest Rates...

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Unformatted text preview: Asset Demand Equilibrium Interest Rates Market for Money: LPF Equilibrium Interest Rates in LPF Can we really do monetary policy? In the short run the liquidity effect dominates In the long run the nominal interest rate rises Many interpretations. Recent, sophisticated econometric evidence points to: However, graphs like this are not very informative. Bond Market ...
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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.

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