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Can a country gain international competitiveness by the design of optimal monetary stabilization rules? This paper reconsiders this question by specifying an open-economy monetary model encompassing a 'production relocation externality,' developed in trade theory to analyze the benefits from...
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responsible for the slow recovery of employment, though not for the initial drop. Monetary policy shocks predict an inflation rate … 0.5% below average. Government expenditure innovations do not contribute much either to inflation or to employment …
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I revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New … employment, and in determining the welfare impact of enhanced wage flexibility. I show that the latter is not always welfare …
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