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Update unpleasant.md
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SylviaZhaooo committed Jul 1, 2024
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Just before the beginning of time $0$, the public owns $\check m_0$ units of currency (measured in dollars)
and $\widetilde R \check B_{-1}$ units of one-period indexed bonds (measured in time $0$ goods); these two quantities are initial conditions set outside the model.
Notice that $\check m_0$ is a *nominal* quantity, being measured in dollar, while
Notice that $\check m_0$ is a *nominal* quantity, being measured in dollars, while
$\widetilde R \check B_{-1}$ is a *real* quantity, being measured in time $0$ goods.
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Here, by **fiscal policy** we mean the collection of actions that determine a sequence of net-of-interest government deficits $\{g_t\}_{t=0}^\infty$ that must be financed by issuing to the public either money or interest bearing bonds.
By **monetary policy** or *debt-management policy*, we mean the collection of actions that determine how the government divides its portolio of debts to the public between interest-bearing parts (government bonds) and non-interest-bearing parts (money).
By **monetary policy** or **debt-management policy**, we mean the collection of actions that determine how the government divides its portolio of debts to the public between interest-bearing parts (government bonds) and non-interest-bearing parts (money).
By an **open market operation**, we mean a government monetary policy action in which the government
(or its delegate, say, a central bank) either buys government bonds from the public for newly issued money, or sells bonds to the public and withdraws the money it receives from public circulation.
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