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Conventional wisdom suggests that nominal, demand-side shocks have only temporary effects on real macroeconomic magnitudes and that the duration of their effects depends on the degree of nominal inertia. It is also argued that, in the absence of unit roots, temporary supply-side shocks also have...
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business cycle theory. The second section deals with imperfect information as an impediment to finding work: search theory …, implicit contract theory, and efficiency wage theory. The third section concerns labour market institutions as sources of …
Persistent link: https://www.econbiz.de/10005497987
Conventional wisdom suggests that nominal, demand-side shocks have only temporary effects on real macroeconomic magnitudes and that the duration of their effects depends on the degree of nominal inertia. It is also argued that, in the absence of unit roots, temporary supply-side shocks also have...
Persistent link: https://www.econbiz.de/10010293971
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