interdependencies between the terms of trade and economic growth are offered: the home market effect and the productivity shock effect …

This paper analyzes the effects of fiscal policy in an open economy. We extend the savers-spenders theory of Mankiw …

stronger bargaining position when they try to prevent a cut in money wages. If inflation is so low that some money wages have … to be cut, workers‘ stronger bargaining position requires higher unemployment in equilibrium. However, inflation is more … stable when money wage rigidity binds, providing an incentive for monetary policy makers to choose a low target for inflation …

economic performance under inflation targets, and arguments that the flexible exchange rate has undermined real economic …