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(Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily …: policymakers of an internationally highly integrated economy should keep public liabilities (the stock of both central bank money …
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large emerging market economy. Our UIG for China is less noisy but still closely tracks the headline CPI. It does not suffer …
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The authors solve the IS puzzle for the G7 countries. They find that five of the G7 countries have the expected significant negative relationship between the output gap and the real-rate gap; the time series of the remaining two show material deviation from expected IS-curve behavior. The...
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