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The paper develops a simple choice-theoretic model suitable for carrying out welfare" analyses of the international transmission of monetary and fiscal policies. The model can be" solved in closed form and illustrated in terms of the simplest graphical apparatus provide the analysis of...
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managing the economic effects of tariff shocks, which may induce a slowdown while raising inflation. This paper studies the … gap at the expense of further aggravating short-run inflation---contrary to the prescription of the standard Taylor rule …
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spending if inflation rises initially. This response drives down private demand even though short-term real rates fall. As this …
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unexpected hikes in tariffs and trade costs. Although tariffs induce a slowdown with rising inflation like supply shocks, their … expansionary: central banks support activity at the expense of further aggravating short-run inflation—contrary to the prescription …
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prices at the expense of aggravating short-run headline inflation---contrary to the prescription of the standard Taylor rule …
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