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Fallacy of New Keynesian (Palley)

Zero lower bound (ZLB) economics: The fallacy of new keynesian explanations of stagnation by Thomas I. Palley published by Macroeconomic Policy Institute (2/2016). “This paper explores zero lower bound (ZLB) economics. The ZLB is widely invoked to explain stagnation and it fits with the long tradition that argues Keynesian economics is a special case based on nominal rigidities…”

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