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Browsing Working Papers CREI (Centre de Recerca en Economia Internacional) by Subject "Trade imbalances"

Browsing Working Papers CREI (Centre de Recerca en Economia Internacional) by Subject "Trade imbalances"

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  • Fornaro, Luca; Romei, Federica (2023-06)
    We study optimal monetary policy during times of exceptionally high global demand for tradable goods, relative to non-tradable ones. The optimal monetary response entails a rise in inflation, which helps rebalance production ...

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