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The objective of this paper is to analyze the monetary and fiscal history of Mexico using a model of the consolidated … between the federal government and Banco de México, and policy choices made in the aftermath of the 1994 crisis, are … the 1982 crisis, Mexico succeeded in controlling inflation. I discuss forces that reduced inflation over time: a long …
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This paper reconsiders the role of macroeconomic shocks and policies in determining the Great Recession and the subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate policy. In contrast with previous findings, the...
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Keynesian theory suggests that a reduction in government expenditure has a negative effect on private demand and therefore on output. Contrary, neoclassical theory argues that reduced public expenditure makes room for an expansion of the private sector and thus has a stimulating effect on the...
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