Monday, September 2, 2013

The real interest rate in the information transfer model

I mentioned doing this with real rates. Well, no big surprises, it works just as well (this fit was done partially by eye using the values from the nominal rates as a starting point):





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Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.