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We study the short-run macroeconomic effects of trade policies that are equivalent in a friction-less economy, namely a … reduction (VP), and a border adjustment of corporate pro.t taxes (BAT). Using a dynamic New Keynesian open-economy framework, we …
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We study the effects of unexpected changes in trade policy uncertainty (TPU) on the U.S. economy. We construct three …
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This paper investigates the macroeconomic risks associated with undesirably low inflation using a medium-sized New Keynesian model. We consider different causes of persistently low inflation, including a downward shift in long-run inflation expectations, a fall in nominal wage growth, and a...
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