Nominal anchors in the long run

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Nominal Anchors in the Long Run.

Explain the main differences between the three main nominal anchor choices presented in Chapter3: i) Exchange Rate Target; ii) Money supply target; and iii) Inflation target plus interest rate policy. Use equations to support your answer and do not forget to describe how each of these nominal anchors affect inflation in the long-run.

Reference no: EM131000868

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