23 Citations
The Long-Run Effects of Monetary Policy
- Economics
- 2020
Does monetary policy have persistent effects on the productive capacity of the economy? Yes, we find that such effects are economically and statistically significant and last for over a decade based…
The importance of beliefs in shaping macroeconomic outcomes
- EconomicsOxford Review of Economic Policy
- 2020
For the past 30 years of the history of macroeconomic thought, the Indeterminacy School of Macroeconomics has used general equilibrium models with indeterminate equilibria to understand the…
The Role of Financial Policy
- EconomicsReview of Keynesian Economics
- 2018
I review the contribution and influence of Milton Friedman's 1968 presidential address to the American Economic Association. I argue that Friedman's influence on the practice of central banking was…
Some International Evidence for Keynesian Economics Without the Phillips Curve
- EconomicsFinance and Economics Discussion Series
- 2019
Farmer and Nicolo (2018) show that the Farmer Monetary (FM)- model outperforms the three-equation New-Keynesian (NK)-model in post war U.S. data. In this paper, we compare the marginal data density…
What Bird is That? Central Banking and Monetary Policy in the Last Forty Years
- Economics
- 2020
The aim of this paper is to review the historical development of monetary policy theory since the 1980s using as focal point the nexus among central bank governance, central banker preferences and…
Monetary Policy, Expectations and Business Cycles in the U.S. Post-War Period
- Economics
- 2017
This paper examines the interactions between monetary policy and the formation of expectations to explain U.S. business cycle fluctuations in the post-war period. I estimate a conventional…
Monetary Policy, Self-Fulfilling Expectations and the U.S. Business Cycle
- Economics
- 2020
I estimate a medium-scale New-Keynesian model and relax the conventional assumption that the central bank adopted an active monetary policy by pursuing inflation and output stability over the entire…
Vítor Constâncio: Developing models for policy analysis in central banks
- Economics
- 2017
We value research because it contributes to shape the intellectual framework that we use to understand economic developments and to take policy decisions. We are especially keen to keep abreast of…
Macroeconomic Implications of Financial Imperfections: A Survey
- Economics
- 2017
This paper surveys the theoretical and empirical literature on the macroeconomic implications of financial imperfections. It focuses on two major channels through which financial imperfections can…
References
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Animal Spirits, Persistent Unemployment and the Belief Function
- Economics
- 2010
This paper presents a theory of the monetary transmission mechanism in a monetary version of Farmer's (2009) model in which there are multiple equilibrium unemployment rates. The model has two…
The Monetary Transmission Mechanism
- Economics
- 2000
Recent literature on structural vector autoregressions has attempted to identify the effects on the economy of an increase in the stock of money. This work has led to a broad concensus. Initially, an…
TWO NEW KEYNESIAN THEORIES OF STICKY PRICES
- EconomicsMacroeconomic Dynamics
- 2000
Two alternative theories of aggregate supply, both with a New Keynesian “flavor,” are compared. The first assumes that prices are rigid due to the existence of menu costs. The second derives price…
Confidence, Crashes and Animal Spirits
- Economics
- 2009
This paper presents a model of the macroeconomy that reformulates what I take to be two important ideas from Keynes General Theory. The first is that there may be a continuum of steady state…
Animal Spirits, Financial Crises and Persistent Unemployment
- Economics
- 2011
This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of…
Expectations, Employment and Prices
- Economics
- 2010
Expectations, Employment and Prices brings Keynesian economics into the 21st century by providing a new paradigm that explains how high unemployment could potentially persist forever without a little…
Learning and expectations in macroeconomics
- Economics
- 2001
A crucial challenge for economists is figuring out how people interpret the world and form expectations that will likely influence their economic activity. Inflation, asset prices, exchange rates,…
INTEREST AND PRICES: FOUNDATIONS OF A THEORY OF MONETARY POLICY
- EconomicsMacroeconomic Dynamics
- 2005
With the collapse of the Bretton Woods system, any pretense of a connection of the world's currencies to any real commodity has been abandoned. Yet since the 1980s, most central banks have abandoned…
Shocks and Frictions in U.S. Business Cycles: A Bayesian DSGE Approach
- Economics
- 2007
Using a Bayesian likelihood approach, we estimate a dynamic stochastic general equilibrium model for the US economy using seven macro-economic time series. The model incorporates many types of real…
Prosperity for All: How to Prevent Financial Crises
- Economics
- 2016
In the aftermath of the 2008 financial crisis, economists around the world have advanced theories to explain the persistence of high unemployment and low growth rates. According to Roger E. A.…