Terms

45 new/unreviewed 45 total

Term

What does the MP curve represent?

Definition

The relationship between inflation and the real interest rate set by monetary policy....

New/Unreviewed

Term

Why does the MP curve slope upward?

Definition

Because central banks raise real interest rates when inflation increases....

New/Unreviewed

Term

What is the Taylor principle?

Definition

The idea that central banks raise nominal rates more than one-for-one with inflation....

New/Unreviewed

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