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In this paper we advocate a way of approaching macroeconomic policy, which stands in contrast to the now discredited 'new consensus in macroeconomics' policy framework. The five pillars of our approach are: the need for budget deficits to support the level of aggregate demand; full consideration...
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/implications – The conclusion of this paper should be incorporated in all macroeconomics textbooks. Lack of such analyses may leave a … paper is to readers of macroeconomics textbooks. This paper has an original value in that it communicates to readers that … most macroeconomic textbooks fail to provide detailed and clear explanations as to why very frequently monetary policy does …
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