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Convergence, financial development, and policy analysis

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Fiscal Stimulus Under Average Inflation Targeting

Liu, Zheng; Miao, Jianjun; Su, Dongling - 2023

Abstract. The stimulus effects of expansionary fiscal policy under average inflationtargeting (AIT) depends on both monetary and fiscal policy regimes. AITfeatures an inflation makeup under the monetary regime, but not under thefiscal regime. In normal times, AIT amplifies the short-run...

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