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A Study on the Dynamics of Interest Rate


  • LI, Wu


By integrating the fiat money into the structural growth model in [1], this paper presents a dynamic model for the simulation study of interest rate. And the model is illustrated with a numerical example. The equilibria of the numerical example are also computed by the method in [2]. The monetary policies of controlling the interest rate and controlling the money supply are simulated.

Suggested Citation

  • LI, Wu, 2012. "A Study on the Dynamics of Interest Rate," MPRA Paper 42840, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:42840

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    More about this item


    interest rate; money supply; general equilibrium; price;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

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