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Most of the literature on monetary policy delegation assumes that the government can credibly commit to the delegation contract, an assumption criticized by McCallum. This paper provides foundations for the assumption that renegotiating a delegation contract can be costly by illustrating how...
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interaction between institutional setting and the type of resources that the country possesses. Some natural resources are for … appropriable resources). This potential problem can, however, be countered by good institutional quality (rendering these resources … natural resources on economic growth is non-monotonic in institutional quality. Mineral rich countries are cursed only if they …
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