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economy. If the government attempts to stimulate output beyond its natural level, a "deficit bias" emerges under non-cooperation …; under cooperation, the equilibrium is characterised by both a "deficit bias" and an "inflation bias". However, if the …
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First, we need to recall the initial objectives set for the euro and how these have changed over time, notably due to the weaknesses that came to the fore throughout the recent crisis. This also calls into question the policy choices made during the crisis and the priorities going forward.
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