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This paper estimates a series of shocks to hit the US economy during the Great Depression, using a New Keynesian model … rise in military spending effectively brought an end to the Depression in 1941. With the economy at or near the zero … Depression ; expectations ; deflation ; zero bound ; liquidity trap …
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The great depression of 1929 and the great financial crisis of 2008 have been the two big events of the last 75 years. Not only have they produced serious economic consequences but they also changed our view of economics and policymaking. The aim of this work is to compare these two great crises...
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