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One problem that Japan faced in fighting deflation is what Keynesian economists refer to as a "liquidity trap," where monetary policy is ineffective. On a graph, show what would happen if the
What policy mistakes were made in the Great Depression? How can these mistakes me shown using the 3-equation model? Show in a diagram how fiscal stimulus could have averted a deflation trap.
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Japan's Policy Trap: Dollars, Deflation, and the Crisis of Japanese Finance: Mikuni, Akio, Murphy, R. Taggart: 9780815702221: Amazon.com: Books
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Lecture 4 4.1Introduction 4.2The case for low Inflation 4.3 Alternative monetary policy frameworks 4.4 The problem of deflation 4.5 Monetary Policy Rule. - ppt download