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Now discuss the fact that deflation is the central bank’s wo

Paper help Economics Now discuss the fact that deflation is the central bank’s wo

Economics

Now discuss the fact that deflation is the central bank’s wo

Now discuss the fact that deflation is the central bank’s worst nightmare. Make sure you refer to a… Show more Now discuss the fact that deflation is the central bank’s worst nightmare. Make sure you refer to a real interest rate of -2.68%. Why is this environment such a nightmare for the central bank and monetary policy? Explain using the equation for the real rate of interest. • Show less

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