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I examine the contribution of institutional breakdowns to long-run development, drawing on Argentina’s unique departure … counterfactual scenario to examine the path of Argentina’s long-run development in the absence of breakdowns, assuming it would … follow the institutional trends in countries at parallel stages of development. Drawing on Argentina’s large historical …
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At a minimum, this paper should serve as a warning against too easy an acceptance of the view that the costs of sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent increase in inflation, the present value of the...
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