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The efficiency of macroeconomic policies depends on adequate business cycle approximation. Given that potential output and the output gap (the difference between actual and potential output) are not directly observable, their values need to be estimated using alternative statistical, structural,...
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based on the quantity theory of money. Some theorists say that any rate of inflation other than zero is inherently instable …In this paper the stability of an inflationary process is examined. A dynamic model of the inflation has been developed …. They say that as people become aware of the fact of continues inflation, however slow, they will anticipate inflation and …
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