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Currently, many monetary and fiscal policy measures are aimed at preventing the financial market meltdown that started in the US subprime sector and has spread worldwide as a great recession. Although some slow recovery appears to be on the horizon, it is worthwhile exploring the fragility and...
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In the last months, the world's economies were confronted with the largest economic recession since the Great Depression. The occurrence of a worldwide financial market meltdown as a consequence originally stemming from of the crisis in the US subprime housing sector was only prevented by...
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replacing the conventional LM-curve, with gradually adjusting wages as well as prices, and with perfect foresight on current … approach with the New Keynesian approach, the Neoclassical Synthesis, stage II, with staggered price and wage setting and find … of our wage-price spiral. We show for a system estimate of our model that it implies qualitatively local asymptotic …
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