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pimpineasy

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tT
发表于 2011-7-11 19:37 | 只看该作者
2009 exam Q 5:

Taylor rule suggests that Bank of England should target a short term interest rate of 3.75% vs. current 5.5%.

What will the effect on the economy?

 

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infinitybenzo

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发表于 2011-7-11 19:37 | 只看该作者
I think this was the one where inflation was already like 4% or something.... therefore lowering the rate almost 2% has the potential to send inflation way up....

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