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Rational Expectations in a Multilateral Macro-Model

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Abstract

The object of this paper is to investigate the effects of fiscal and monetary shocks on the exchange rate within a world macroeconomic model. The model is macroeconomic in the sense that it has no ‘supply-side’ at this stage; the equilibrium (or ‘natural’) values of output, real interest rates, real exchange rates, etc., are all taken as exogenous.

Keywords

Exchange Rate Interest Rate Current Account Real Exchange Rate Real Wage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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© Paul De Grauwe and Theo Peeters 1983

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