Abstract Since the Kyoto Protocol, the Paris Agreement, and COP26, global policymakers
have been working toward energy transition (SDG-7), sustainable development (SDG-8) …

Welfare-maximizing monetary-and fiscal-policy rules are studied in a model with sticky
prices, money, and distortionary taxation. The Ramsey-optimal policy is used as a point of …

This paper considers a prototypical New Keynesian model, in which the equilibrium is
undetermined if monetary policy is “passive.” The likelihood-based estimation of dynamic …

This paper incorporates limited asset markets participation in dynamic general equilibrium
and develops a simple analytical framework for monetary policy analysis. Aggregate …

This paper studies the role of endogenous producer entry and product creation for monetary
policy analysis and business cycle dynamics in a general equilibrium model with imperfect …

This paper analyzes the restrictions necessary to ensure that the interest rate policy rule
used by the central bank does not introduce local real indeterminacy into the economy. It …

A novel complementarity between capital and income inequality leads to a significant
amplification of the effects of aggregate-demand shocks on consumption. We characterize …

The paper examines simple monetary and fiscal policy rules consistent with determinate
equilibrium dynamics in the absence of Ricardian equivalence. Under this assumption …

Using a series of examples, we review the various ways in which a monetary policy
characterized by the Taylor rule can inject volatility into the economy. In the examples, a …

The monetary transmission mechanism in New-Keynesian models is put to scrutiny. We
show that, contrary to the conventional view, the transmission mechanism does not operate …