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The simple macroeconomics of North-South interaction

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The purpose of this paper has been to capture in the simplest possible way the macroeconomic interactions between two economies (North and South). Our main interest has been to illuminate two important issues in global macroeconomics using a simple model: the effects of fiscal stimulus (Reaganomics) in the North and the effects of debt relief for the South and aid to the South. -Authors

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American Economic Review

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