Can indeterminacy and self-fulfilling expectations solve the international macro puzzles?

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McKnight, S.; Povoledo, L.;
  • Publisher: University of the West of England Economics Working Paper Series

We introduce equilibrium indeterminacy into a two-country incomplete asset model with imperfect competition and analyze whether self-fulfilling expectations or beliefs can help resolve the major puzzles of international business cycles. We show that when self-fulfilling... View more
  • References (45)
    45 references, page 1 of 5

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