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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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In the wake of the COVID-19 crisis, governments around the world announced unprecedented fiscal packages to address the economic impact of the crisis. The unusually large scale of the packages was accompanied by widespread calls for "greening" them to meet the dual goals of economic recovery and...
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