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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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This paper builds a model-based dynamic monetary and fiscal conditions index (DMFCI) and uses it to examine the evolution of the joint stance of monetary and fiscal policies in the euro area (EA) and in its three largest member countries over the period 2007-2018. The index is based on the...
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The lack of a clear link between general economic fundamentals and export diversification indicators in the literature has fueled the believe that industrial policies are an absolute requisite to diversify exports. This paper, however, does find a strong statistical connection between horizontal...
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