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Growing Economy
DOI link for Growing Economy
Growing Economy
would 0 37; in Situation I this would rise only to 0 39 but in Situation II it would go up to 0 61. The permanent fall in the rate of interest would have a very much greater effect in raising the present value of distant future yields on any capital instrument. But so far in this volume we have assumed that the Central Bank lend for the current day at a given daily rate of interest (i at 8 a.m. on day 0, i at 8 a.m. on day 1, and so on). If the Central Bank fixes only the rate of interest for each day, how can it influence the expectations of the citizens about the future rates of interest? If in fact it could reduce only the rate of interest for one day (without any
Edition 1st Edition
First Published 1968
Imprint Routledge
Pages 1
eBook ISBN 9780203106594