In the context of an open economy 3-equations model, analyse with a diagram how a temporary positive demand shock (lasting only one period) is stabilised by the central bank, commenting on whether the over or under-shooting result still applies.
In the context of an open economy 3-equations model, analyse with a diagram how a temporary positive demand shock (lasting only one period) is stabilised by the central bank, commenting on whether the over or under-shooting result still applies.
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In the context of an open economy 3-equations model, analyse with a diagram how a temporary positive demand shock (lasting only one period) is stabilised by the central bank, commenting on whether the over or under-shooting result still applies.
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