Eduardo Amaral
@edugca.bsky.social
Ph.D. in Economics @PUCRioEconomia || monetary || so much to explore outside || views are only mine || tweets mostly in 🇧🇷🇵🇹
https://sites.google.com/site/edugca/
https://sites.google.com/site/edugca/
But what happens when we take this standard model and introduce capital and investment? Things can get weird.
In extreme scenarios, a policy rate hike can cause such a sharp drop in demand & inflation expectations that interest rates collapse. (3/10)
In extreme scenarios, a policy rate hike can cause such a sharp drop in demand & inflation expectations that interest rates collapse. (3/10)
September 24, 2025 at 2:01 AM
But what happens when we take this standard model and introduce capital and investment? Things can get weird.
In extreme scenarios, a policy rate hike can cause such a sharp drop in demand & inflation expectations that interest rates collapse. (3/10)
In extreme scenarios, a policy rate hike can cause such a sharp drop in demand & inflation expectations that interest rates collapse. (3/10)
Can a central bank tighten monetary policy and actually see real interest rates FALL under monetary dominance?
My new research paper finds that under certain conditions, the answer is a surprising YES.
A thread on a monetary policy puzzle (1/10) #Economics #MonetaryPolicy #CentralBank
My new research paper finds that under certain conditions, the answer is a surprising YES.
A thread on a monetary policy puzzle (1/10) #Economics #MonetaryPolicy #CentralBank
September 24, 2025 at 2:01 AM
Can a central bank tighten monetary policy and actually see real interest rates FALL under monetary dominance?
My new research paper finds that under certain conditions, the answer is a surprising YES.
A thread on a monetary policy puzzle (1/10) #Economics #MonetaryPolicy #CentralBank
My new research paper finds that under certain conditions, the answer is a surprising YES.
A thread on a monetary policy puzzle (1/10) #Economics #MonetaryPolicy #CentralBank