Traditional macroeconomic policy analysis asks the positive question of how the economy responds to alternative, but exogenous, policy actions or rules. Knowing these responses, the analyst can go to the normative problem of policy advice, The best action or rule is selected, given a specific obkective function. But as macroeconomists, we should also be able to shed light on a more ambitious set of questions. Why is it that we observe such different inflation rates across countries and time?, etc.
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Paper provided by Stockholm - International Economic Studies in its series Papers with number
630.
Length: 99 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:stocin:630
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Find related papers by JEL classification: E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
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