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Although negative shocks have persistent effects on output on average, this paper shows that macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock. Indeed, monetary and fiscal stimulus and foreign aid can spur a...
Persistent link: https://www.econbiz.de/10013156316
Although negative shocks have persistent effects on output on average, this paper shows that macroeconomic policies and the structure of the economy can influence the speed of recovery and mitigate the persistence of the shock. Indeed, monetary and fiscal stimulus and foreign aid can spur a...
Persistent link: https://www.econbiz.de/10012677840
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In this chapter, we review the monetary and fiscal history of Argentina for the period 1960–2017, a time during which … from its currency. We argue that all these events are the symptom of a recurrent problem: Argentina's unsuccessful attempts … to tame the fiscal deficit. An implication of our analysis is that the future economic evolution of Argentina depends …
Persistent link: https://www.econbiz.de/10012891419
We use more than one century of Argentine and Mexican data to estimate the structural parameters of a small-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at explaining business cycles in emerging countries. We then...
Persistent link: https://www.econbiz.de/10012760602