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The Duluth model can best be characterized as:
Recessionary Gap
The difference between the real GDP and the potential GDP of an economy, indicating a situation where resources are underutilized.
Monetary Policies
Actions undertaken by a central bank, currency board, or other regulatory committees to control the supply of money and achieve economic goals such as controlling inflation or encouraging economic growth.
Reserve Requirements
Regulations set by central banks determining the minimum amount of reserves a bank must hold against deposits, used as a tool for controlling the money supply.
Government Securities
Financial instruments issued by a government to borrow money, often considered low-risk investments.
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