Jesus, man, I have been spending time studying difficult macro models with a lot of equations...
But the truth is: old ISLM is still useful. Contract monetary policy and expand fiscal policy: what do you get in terms of real interest rate? Scribble on a toilet paper the two lines and tell me later
answer: sesir ti
Acho que o driver são as treasuries, nada a ver com fiscal e monetário
ResponderExcluirThey are important too, FK. But the movement in real rates was stronger here then elsewhere, even with similar CDS increases across the board
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and what do you get in terms of real output?? gnihton! (assuming both effects are of same magnitude) right?
ResponderExcluirnow, how do you insert inflation in is/lm??
You dont, ISLM it is only about demand. You need a Felipe Curve for that
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