the New-Keynesian model with partial sticky prices studied in class to analyse the following shock and policies (use the five-graph diagram to support your answer). a) The Covid-19 pandemic has caused recession in many countries, including the United States, Australia… Analyse the effects of this Covid shock which brings the Australian economy relatively close to the ZLB .
Use the New-Keynesian model with partial sticky prices studied in class to analyse the following shock and policies (use the five-graph diagram to support your answer).
a) The Covid-19 pandemic has caused recession in many countries, including the United States, Australia… Analyse the effects of this Covid shock which brings the Australian economy relatively close to the ZLB .
b) The Central bank conducted conventional
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