Which System of Interest Rates Is Theoretically Worst for Policy

question 119

Essay

Which system of interest rates is theoretically worst for policy coordination among the industrial countries of the world?
How has this played out since the 1980s?

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Definitions:

External Attribution

The process of attributing the cause of an individual's behavior to external factors, such as the environment or situational circumstances.

Aggressive Behaviour

Actions intended to cause harm or discomfort to another person, either physically or psychologically.

Defensive Attribution

A cognitive bias in which individuals attribute causes for behaviors or events to external factors to protect their self-esteem.

Internal Causes

Factors within an individual, such as traits, beliefs, or desires, that explain or influence their behavior.