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Monetary theory and policy are part of intertemporal public finance. The lecture reviews some interesting recent … the so-called Fiscal Theory of the Price Level, a logically in-consistent theory of the link between the government budget …
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A two-country sticky-price model is used to analyse the interactions between fiscal and monetary policy. The role of an u0091activistu0092 fiscal policy as a stabilisation tool is considered and a measure of the welfare gains from international fiscal policy cooperation is derived. It is found...
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