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In the two-period SOE model, if the current account surplus is initially positive and the real interest rate decreases, then
Ghrelin
A hormone produced mainly by the stomach that stimulates appetite and signals the brain to increase food intake.
Leptin
A hormone involved in regulating energy balance by inhibiting hunger, thereby regulating fat storage in the body.
PYY
Peptide YY is a hormone produced in the gut in response to eating, which has been associated with reducing appetite and inhibiting food intake.
Hypothalamus
A region of the brain that controls various autonomic functions, including temperature regulation, hunger, thirst, and the release of hormones.
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