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The General Model of Inflation Theory

  • Laya Li

摘要

The general model of inflation theory includes three aspects: (1) the commodity market model; (2) the money market model; (3) the rule of regulation (or the policy rule). The supply and demand in the commodity market and money market, as well as the unified equilibrium between these two markets, have been discussed respectively in the previous chapters. In this chapter, the regulation of the commodity market and the money market will be integrated through the policy rule to formulate a unified theoretical and regulatory system so as to construct the general model of inflation theory.