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"We analyze the setting of monetary and nonmonetary policies in monetary unions. We show that in these unions a time inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of nonmonetary policies, such as labor market policy, fiscal policy, and bank...
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derived and simulated. First of all, the monetary persistence of a pure price staggering economy is compared to a pure wage … staggering economy under different labor market structures (by means of a newly proposed persistence measure) and interactions …
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