Stabilization policies: Lessons from the COVID-19 crisis and prospects for future policy strategies
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• Monetary policy cannot control P without fiscal backing!.
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economic history shows that inflation and inflation expectations can become unhinged. There are many self-regulating mechanisms in the economy, but inflation does not regulate
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A comparison of the target federal funds rate with prescriptions from simple rules, as in figure 2, has considerable value and may provide a good summary guide to policy settings for