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This paper assembles findings on the use of trade taxes, examines the main contributing factors, and reviews the fiscal aspects of trade policy as they relate to both efficiency and macroeconomic stabilization. It demonstrates why trade taxes would generally not be part of an optimal tax...
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We argue that in an economy with downward nominal wage rigidity, the output gap is negative on average. Because it is …
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of the economy's potential capacity. We also find, in line with earlier literature, that real-time output gaps are not …
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