All Questions
2 questions
2
votes
0
answers
54
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Irrelevance of Heterogeneous Agent Modelling
This is a question from a previous year PhD entrance exam. I have outlined how I have tried to tackle the problem as well:
N.B. 1 This exam is of 100 points and this particular problem is of 25 points....
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1
vote
1
answer
421
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Central bank loss function (I did a solution, but it doesn’t totally make sense I guess)
I have question on central bank loss function.
We know that the central bank loss function is
$$L(\pi, \bar{Y})= (\pi- \pi^e)^2+\beta \bar {Y}^2$$
And we know that fisher equation is $$i=r+\pi^e$$...
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