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The macroeconomic performance paradox: A new model

Wendy Carlin, David Soskice,(2018), “The macroeconomic performance paradox: A new model”, Vox, 23 Ιανουαρίου

Following the post-financial crisis recession, standard macroeconomic models would have predicted either a destabilising deflationary spiral, or a return to the central bank’s inflation target with a positive ‘neutral’ real interest rate, along with a rebound of productivity growth, falling unemployment, and rising inflation.

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