Explain why temporary and permanent fiscal expansions do not have different effects under fixed exchange rates, as

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Explain why temporary and permanent fiscal expansions do not have different effects under fixed exchange rates, as they do under floating exchange rates.

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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Question Posted: Oct 24, 2012 11:47 PM

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Explain why temporary and permanent fiscal expansions do not have different effects under fixed exchange rates, as

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The reason that the effects of temporary and permanent fiscal expansions differ under floati...View the full answer

International Economics Theory and Policy

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