Monthly Archives: October 2016
The Brexit-News Boom?
Start with a bog-standard second-year textbook Mundell-Fleming ISLMBP model. Start in equilibrium at Y*, then hit it with a negative shock to Net eXports. The IS curve shifts left initially, at the previous equilibrium exchange rate. But the central bank is sensible, and allows the exchange rate to depreciate sufficiently to shift the IS curve […]
Worthwhile Canadian Initiative 
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