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Unformatted text preview: What are the implications of the theory for the effectiveness of stabilisation policies? 3. Within the monetarist framework, would an expansionary fiscal policy action have short and long run policy effects similar to a monetary expansion? 4. Many central banks began following more restrictive monetary policies after the inflation problems of the 1970s. Using the Phillips curve, provide a monetarist analysis of the impacts of this policy shift on inflation and unemployment in the short-run and long-run....
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- Spring '08