The Traderszone Network

Published in TZ Latest News 25 November, 2014 by The TZ Newswire Staff

Neo-Fisherism in a world of multiple policy tools

Nick Rowe has another post criticizing the Neo-Fisherian claim that pegging nominal interest rates at a high level would raise inflation to a higher level.  Nick points out that in a model where interest rates are the central bank’s policy tool, the equilibrium is extremely unstable.

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