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those for the earlier period. Rho is the autocorrelation coefficient which is the sole explanatory power of
the estimated equation. The estimations reveal that money growth essentially doesnt impact the real
rate of interest. The coefficient a1 measures the impact of last months money growth on the current
months real interest rate and is statistically significant, and is taking positive sign; it means that the sum
of the money growth coefficients is not statically significant shows that there is not net impact on the
real rate of interest by the short-run money growth.