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When Sweden left the gold standard on September 27, 1931, the Swedish government declared that the aim of monetary … targeting officially became for the first time the goal for a central bank. Soon after, the Riksbank (Bank of Sweden) sent a …
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Unlike Knut Wicksell, Eli Heckscher did not believe the time had arrived for “managed money” to replace the gold standard after World War I. The war had shown that only a gold standard could bind the central bank to a time-consistent policy with reasonable price stability. Heckscher likened...
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The theory and practice of stabilization policy has taken many turns as it evolved over the past century, oscillating … economy in the face of macroeconomic shocks. Views on this question have been shaped by experience, theory and ideology to …
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