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Real vs Nominal Interest Rates |
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| May4-12, 01:08 PM | #1 |
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Real vs Nominal Interest Rates
In the Money Supply-Money Demand curve, the equilibrium interest rate is the real or nominal interest rate?
Or are they the same thing for the purposes of evaluating monetary policy? BiP |
| May4-12, 01:18 PM | #2 |
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If monetary policy worked (which it doesn't) then they should be identical (in shape not necessarily in value) as inflation should be constant.
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| May4-12, 01:26 PM | #3 |
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BiP |
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