Blázquez, Jorge; Martín-Moreno, José M. - Instituto Universitario de Estudios e Desenvolvemento … - 2000
Dual inflation takes place when prices increases in non-tradable goods are higher than those of tradable goods. In this paper, we develop a model where public spending has a positive externality on the production of those sectors. The main results suggested by the paper are the following: 1)An...