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global equilibrium dynamics of inflation, interest rates, and labor earnings in response to changes in the stock of … inflation …
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How do cyclical fiscal stabilisation policies affect welfare and government bond risk premia? Using a new Keynesian model we find that the effects of fiscal policy rules on the bond premium and welfare crucially depend on the source of business cycle fluctuations. The overall effect is estimated...
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discount rates affect inflation through the intertemporal government budget equation. When the yield curve is upward …
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