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This paper analyzes the role of investment policies in regimes undergoing trade liberalization with policy makers of uncertain credibility. We consider an economy producing exportable and importable goods. The economy is liberalized, and tariffs are eliminated. The public views the reform...
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current account and the reduction of inflation, the main cause in both cases being usually a fiscal deficit. It is shown how … is suggested. Reducing inflation involves both an inflation tax replacement and a price adjustment problem, and …
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inflation have an impact on economic growth. They may intensify or compensate for positive and negative relations between … inflation and economic growth. …
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