Is real money supply adjusted for inflation and changes in interest rates due to changes in money supply or only inflation ?
I believe its adjusted just for inflation, kinda like real rates are adjusted nominal rates. Could be incorrect, just trying to help out
No nominal rates are real rates that are adjusted for inflation. Real rates have no inflation embedded in them. Im not sure what real money supply is though.
adil.faizee Wrote: ------------------------------------------------------- > Is real money supply adjusted for inflation Yes > and > changes in interest rates due to changes in money > supply > or only inflation ? Not sure what this second part means.
when money supply changes it changes the interest rates, so does real money supply is also adjusted for interest rate change like inflation ?
The money supply can’t really be adjusted for interest rate change. It can be adjusted for inflation.