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Imposing the natural rate hypothesis (NRH) can dramatically alter the determinacy bounds on monetary policy by closing the output gap in the long run. I show that the hypothesis eliminates any role for the output gap in determinacy and renders the conditions for determinacy identical for all...
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Having the high unemployment in Germany in mind, this book discusses how macroeconomic theory has evolved over the past … business cycle theory. It also probes in which direction models may be extended from here. Empirically, the book uses different …
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