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monetary and macroeconomics made in Don Patinkin's Money, Interest, and Prices (MIP). Its first accomplishment was to settle … of the Keynesian system, and the requirements for the neutrality of money, which had been disputed for decades. It also …
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ineffectiveness when nominal interest approaches the zero-bound rate. This situation was termed a liquidity trap (LT) by Robertson and … solution to overcome the LT. The macroeconomic mainstream contends that the LT is essentially a money demand problem, whereas … transformation of the monetary base into money supply. To prove our thesis, we study the behavior of the USA money multiplier and the …
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