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This study explores economic interdependence in Mercosur by examining common trends and common cycles among key macro … macroeconomic interdependence in the Mercosur economies is strong. The exchange rates demonstrate co-movement in the long run as … correlations. Our overall findings thus provide justification and optimism for deeper economic integration among Mercosur countries. …
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Differences across countries or decades in the countercyclical stance of fiscal policy can help identify whether the growth in government spending affects output growth and so speeds recovery from a recession. We use the heterogeneity in the government-spending reaction functions across twenty...
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