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In the second part of the 80s, Japan was under political pressure to expand aggregate demand. It followed suit in … Japan became the victim of a misleading concept of global demand management. …
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In this paper, we consider the case of a resource-exporting country that invests part of its resource earnings in the international capital market. We can show that the recycling of Hotelling rents introduces an incentive to supply more resources today and thus alleviates the resource shortage...
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