suppose that the government would switch to a strong countercyclical viewpoint, reflected in a more negative value

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suppose that the government would switch to a strong countercyclical viewpoint, reflected in a more negative value for the parameter 11,2. Predictions with the model based on the existing estimates of the (pi-parameters would seriously misrepresent the real effects of this policy switch, due to the fact that the actual 0,-parameters would change.

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Foundations Of Modern Macroeconomics

ISBN: 9781264857937

1st Edition

Authors: Ben J. Heijdra, Frederick Van Der Ploeg

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