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Monetary Policy Rules and Business Cycles

✍ Scribed by Soyoung Kim


Book ID
108535618
Publisher
John Wiley and Sons
Year
2003
Tongue
English
Weight
367 KB
Volume
105
Category
Article
ISSN
0347-0520

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The effectiveness of economic policies depends on the nature of expectations. Under adaptive expectations, the Philipps curve allows a governement to 'surprise' agents. Under rational expectations, there is less room for economic policies. We assume that only an (endogenously determined) proportion