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Many countries that experience hyperinflation do not have market-determined interest rates. As a result, some authors have substituted future inflation rates into money demand equations of the following type as a proxy: (m is real money, and P is the consumer price index).
Income is typically omitted since movements in it are dwarfed by money growth and the inflation rate. Authors have then interpreted β1 as the "semi-elasticity" of the inflation rate. Do you see any problems with this interpretation?
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A sociologist recognized for his work on risk society, individualization, and reflexivity in contemporary society.
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