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  • Simon Gilchrist and Masashi Saito, Asset Prices and Monetary Policy (University of Chicago Press, 2008), chap. 2, https://www.nber.org/books-and-chapters/asset-prices-and-monetary-policy/expectations-asset-prices-and-monetary-policy-role-learning.

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This paper studies the implications of financial market imperfections represented by a countercyclical external...

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