Abstract
In this chapter we consider a world of two monetary regions, let us say Europe and America. The exchange rate between Europe and America is flexible. Take for example an increase in European money supply. Then what will be the effect on European output, and what on American output? Alternatively take an increase in European investment, European nominal wages, or European productivity.
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© 2002 Springer-Verlag Berlin Heidelberg
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Carlberg, M. (2002). The Static Model. In: Inflation in a Monetary Union. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24759-3_3
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DOI: https://doi.org/10.1007/978-3-540-24759-3_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-07769-2
Online ISBN: 978-3-540-24759-3
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