Gianluca Benigno on the Basics and Policy Functionality of R** and the Dollar’s Imperial Circle
Macro Musings with David Beckworth
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The Importance of R Double Star
R double star is a concept that talk exactly to this issue. If we want as a policy maker of target R star because we want to reach macroeconomic stability, one problem would be the situation in which R double star is below R star. So that in that journey towards targeting macro economic stability, we eat financial stress. And I would say also something else, in reference to what we were saying earlier, most of the time when we think about the macroeconomic effect of interest rate, we tend to think very much in terms of the context of the new Canadian framework. But financial aspect of financial factor is a side show and they're neglected.
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