Increasing the independence of a central bank from political influence, although ex-ante
socially beneficial and initially successful in reducing inflation, would ultimately fail to lower …

I study how the general and specific details of a micro‐founded monetary framework affect
the determination of policy when the government has limited commitment. In the general …

We study the Ramsey optimal fiscal and monetary policy in an economy where banks face
collateral constraints. Inflation reduces the net worth of banks and tightens their collateral …

Fiscal policy in the Great Recession and lessons from the past IDEAS home Advanced search
Economic literature: papers, articles, software, chapters, books. Authors Institutions Rankings …

While different scholars agree that war has a significant impact on the volatility in the United
States stock market, they come to contradictory findings on the direction of this impact. The …

We analyze the impact of news (information shocks) in economies where liquidity plays a
role. While we also consider news about real factors, like productivity, one motivation is that …

This paper investigates how institutional constraints discipline the behavior of discretionary
governments subject to an expenditure bias. The focus is on constraints implemented in …

In this paper, we focus on the Lagos and Wright (2005) monetary search model-a workhorse
in the so-called New Monetarist Economics. After describing this micro-founded yet tractable …

Bad Medicine? Federal Debt and Deficits after COVID-19 Page 1 In January 2020, the
Congressional Budget Office (CBO) projected that the federal budget deficit (a negative surplus) …

Countries have widely imposed fiscal rules designed to constrain government spending and
ensure fiscal responsibility. This paper studies the effectiveness and welfare implications of …