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Most economists would agree that a hike in the federal funds rate will cause some slowdown in growth and inflation, and … that the bulk of the empirical evidence is consistent with this statement. But perfectly reasonable economists can and do …
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The United Kingdom employed the McKenna rule to conduct fiscal policy during World War I (WWI) and the interwar period. Named for Reginald McKenna, Chancellor of the Exchequer (1915-16), the McKenna rule committed the United Kingdom to a path of debt retirement, which we show was forward-looking...
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