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Two economists David Romer and Christine Romer (2004) identified 10 instances since the 1940s when the Fed tried purposefully to change the path of economic
Two economists David Romer and Christine Romer (2004) identified 10 instances since the 1940s when the Fed tried purposefully to change the path of economic growth, in all but one case to try to lower inflation it felt was too high. They found that as interest rates rise, output begins to slow about six months after the start of the policy shock, and after nine quarters was 4.5% below where it otherwise would have been
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