Economics Asked by Greased Dog on January 15, 2021
I am reading the Paper "The effects of a money-financed fiscal stimulus" by Galí (2019).
I am trying to derive the log-linearized equilibrium as given in equations (15)-(22). I believe I am able to derive all equations expect for equations (17) and (20). I suspect that equations (12) and/or (13) should be used in deriving at least one of (17) and (20) (and possibly both).
Does anyone have any idea how to proceed?
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