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RDP 9101: The Effect of Steady Inflation on Interest Rates and the Real Exchange Rate in a World with Free Capital Flows
Equation (2′)
m
−
p=ky
−
λ
[
(
i
−
Dp
)
.
(
1
−
τ
)
]
.
k,
λ
>0
(
LM
curve
)
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