Figure 4. Discretionary equilibrium with optimism (low p 0 expectations)
Equilibrium m=1.010
A. objective function
B. relative price distortion
C. markup
0.95 1.05 1.15 1.25 1.35
D. Po
Figure 4. Discretionary equilibrium with optimism (low p 0 expectations)
Equilibrium m=1.010
A. objective function
B. relative price distortion
C. markup
0.95 1.05 1.15 1.25 1.35
D. Po