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In order to get the COVID-19 pandemic under control, most governments around the globe have adopted some sort of containment policies. In the light of the enormous costs of these policies, in many countries highly controversial discussions on the adequacy of the chosen policies evolved. We...
Persistent link: https://www.econbiz.de/10012827114
expansionary policy is constrained. In this environment, it is optimal to run the economy hot until supply recovers. Positive … aggregate demand gains momentum. If inflation also has inertia, the central bank still overheats the economy during the low …
Persistent link: https://www.econbiz.de/10013282457