When the policy rate is at the zero lower bound (ZLB), an increase in uncertainty regarding
the future path of exogenous shocks alters the conditional expectations of relevant prices …

Even when the policy rate is currently not constrained by its effective lower bound (ELB), the
possibility that the policy rate will become constrained in the future lowers today's inflation by …

We develop an algorithm to construct approximate decision rules that are piecewise-linear
and continuous for DSGE models with an occasionally-binding constraint. The functional …

We estimate the effects of government spending shocks during prolonged episodes of low
interest rates, which we consider as proxy for the effective lower bound (ELB). Using a panel …

We examine the implications of less powerful forward guidance for optimal policy using a
sticky-price model with an effective lower bound (ELB) on nominal interest rates as well as a …

The paper reviews the economic risks associated with regimes of high public debt through
DSGE model simulations. The large public debt build-up following the 2009 global financial …

Modifying the objective function of a discretionary central bank to include an interest-rate
smoothing objective increases the welfare of an economy in which large contractionary …

We analyze the household savings problem in a general setting where returns on assets,
non-financial income and impatience are all state dependent and fluctuate over time. All …

This paper develops a dual-state monetary DSGE model that accommodates a refined
financial accelerator to analyze UK monetary policy. Unconventional monetary policy (QE) is …

We analyse implications of financial sector dynamics for fiscal expenditure multipliers in
recessionary conditions. A new stock-flow consistent model is developed in which a …