Endogenous economic policy - Political business cycles
4 important questions on Endogenous economic policy - Political business cycles
What are the two underlying assumptions about rational voters?
2. They extrapolate current years performance and forget previous years
In what way is monetary and fiscal policy used to maximize votes for the government?
How does a government shift the DAD curves in election years under flexible and fixed exchange rates?
Fixed exchange rates: T↓ or G↑
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What is a political business cycle?
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