In a country such as japan that has had verylittle


Due to historical differences, countries often differ in howquickly a change in actual inflation is incorporated into a changein expected inflation. In a country such as Japan that has had verylittle inflation in recent memory, it will take longer for a changein the actual inflation rate to be reflected in a correspondingchange in the expected inflation rate. In contrast, in a countrysuch as Argentina, one that has recently had very high inflation, achange in the actual inflation rate will immediately be reflectedin a corresponding change in the expected inflation rate. What does this imply about the short run and long-run Phillips curves inthese two types of countries? What does this imply about the effectiveness of monetary and fiscal policy to reduce theunemployment rate?

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Macroeconomics: In a country such as japan that has had verylittle
Reference No:- TGS0582025

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