Social Studies, 13.11.2020 14:00 Clark1212
Milton Friedman discussed the possibility of setting the marginal social cost of printing one more unit of money to zero, implying that the real interest rate should be equal to the rate of deflation in the economy, but not everyone agreed with this. What reasoning did Phelps (1973) provide to argue against Friedman's rule? Which interpretation would be correct in the RBC model? Why?
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Milton Friedman discussed the possibility of setting the marginal social cost of printing one more u...
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