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Focuses on the effects of fiscal stimuli and increased government spending, with contributions that consider the measurement of the multiplier effect and its size. This title also includes contributions discuss the merits of alternate means of debt reduction through decreased government spending or increased taxes.
Reviews the traditional case for flexible exchange rates and "countercyclical" - that is, expansionary during recessions and contractionary in booms - monetary policy, and shows how flexible exchange rate regimes can better insulate the economy from such real disturbances as terms-of-trade shocks.
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