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Violations of Tinbergen's Rule and strategic interaction undermine monetary and financial policies significantly in a New Keynesian model with the Bernanke-Gertler accelerator. Welfare costs of risk shocks are large because of efficiency losses and income effects of costly monitoring, but they...
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first oil shock (1973), but accelerated again afterward, reaching levels above 100 percent on average between 1980 and 1994 …
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positive effects on private investments, employment and overall production. On the contrary, a shock to government consumption … output responds positively to a shock in government consumption expenditure. Finally, an instantaneous negative effect on …
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