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-shock specification, we identify, using sign restrictions, two policy shocks, monetary and fiscal, and two non-policy shocks, demand and … supply. We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply … prevails for GDP, while demand prevails for employment and inflation. (ii) Monetary and fiscal policy shocks have sizable …
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bound. Standard money-demand theory indicates that in such cases the interest elasticity of money demand should rise sharply …
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bound. Standard money-demand theory indicates that in such cases the interest elasticity of money demand should rise sharply …
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