Government-Driven Demand as a Cause of Shock Amplification in FlexNIT
A specific cause for the amplification of shocks in FlexNIT economies is a government policy that attempts to maintain aggregate demand at a level higher than what is consistent with equilibrium unemployment. This common policy feature can trigger destabilizing exchange rate movements.
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Introduction to Macroeconomics Course
Ch.7 Macroeconomic policy in the global economy - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Government-Driven Demand as a Cause of Shock Amplification in FlexNIT
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