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Including different interest rates with different maturities would complicate the models however it wouldn't buy you very much. Because interest rates with different maturities are highly correlated, they characteristically move in the same direction and direction of a variable is typically what we are interested in. If you like, think of ‘the interest rate' as the one-year interest rate on government securities.
Q. Overnight rates and interest rates with longer maturity? By controlling overnight interest rates, central bank will affect interest rates with longer maturity. Main reason f
EXPLAIN THE 5 SECTOR MODEL (OPEN ECONOMY) IN INCOME DETERMINATION
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examine keynesian theory of un employment
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