An article in the Economist in 2016 argued: If the Fed wants higher nominal rates in a
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An article in the Economist in 2016 argued: “If the Fed wants higher nominal rates in a world of low real rates, it must cultivate higher inflation.” Briefly explain the author’s reasoning.
Nominal Rates"Nominal interest rate refers to the interest rate before taking inflation into account. Nominal can also refer to the advertised or stated interest rate on a loan, without taking into account any fees or compounding of interest. The nominal...
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Nominal interest rates equal real i...View the full answer
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Related Book For 
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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