Rao Aiyagai argues that the
◦ costs of reducing the nominal interest rate to zero would exceed the benefits.
◦ optimal performance of an economy is where nominal and real interest rates are equal.
◦ benefits of reducing the nominal interest rate to zero would exceed the costs.
◦ costs of reducing the inflation rate to zero would exceed the benefits.
◦ benefits of reducing the inflation rate to zero would exceed the costs.
