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Is the monetary policy reaction curve applicable only to central banks that have an explicit inflation target? Explain.
Principal
The original amount of money borrowed or invested, before any interest or profit is added.
Agent
An entity that acts on behalf of another entity or person, typically in a business context.
Operating
The process of controlling and managing the day-to-day activities necessary for running a business or organization.
Incentive Scheme
A structured plan designed to promote or encourage specific actions or behaviors by offering rewards or penalties.
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